This is a one semester, creative commons licensed macroeconomics textbook designed for urban, community college students. These students may be studying for a degree part-time while working a job and raising a family. They may be fresh out of high school or older students returning to school after decades in the workplace. They may be English language learners. They may know about some of the curriculum, like discriminatory housing or labor markets, from firsthand experience. For all of them, the mission of this book is to teach them to use economic analysis to address their own lived experiences.

ussell Cooper and Andrew John have written an economics text aimed directly at students from its very inception. You're thinking, ”Yeah, sure. I've heard that before.“

This textbook, Macroeconomics: Theory Through Applications, centers around student needs and expectations through two premises: … Students are motivated to study economics if they see that it relates to their own lives. … Students learn best from an inductive approach, in which they are first confronted with a problem, and then led through the process of solving that problem.

Many books claim to present economics in a way that is digestible for students; Russell and Andrew have truly created one from scratch. This textbook will assist you in increasing students' economic literacy both by developing their aptitude for economic thinking and by presenting key insights about economics that every educated individual should know.

An equilibrium exists in a market when there is no pressure for the market price to change. Learn about what it means for a market equilibrium to exist, and how to identify a market equilibrium in a market model. Created by Sal Khan.

Going through the mechanics of how a Thai financial institution can lose their shirt when their currency devalues. Created by Sal Khan.

Generalizing what we did in the last video with more math. Created by Sal Khan.

Moderate amounts of inflation are common in healthy economies, so some inflation may actually be a good sign. Learn why in this video. Created by Sal Khan.

Monetary policy is the use of the money supply to affect key macroeconomic variables, such as real GDP. This video focuses on how a central bank can use open market operations and reserve requirements to enact monetary policy to close output gaps.

Most people assume that the government prints money, and that is how money is created. That is not entirely true. Watch this video to find out the role that banks play in the creation of the money supply.

In this video, learn about the two measures of money that are part of the money supply: M1 and M2. Topics include what is included in M1 and M2 and the monetary base (which is sometimes called M0). Created by Sal Khan.

Examples showing how various factors can affect interest rates. Created by Sal Khan.

If you make some cloth and someone uses that cloth to produce something else, how does that show up in the calculation of GDP? In this video, learn how GDP deals with intermediate goods. Created by Sal Khan.

The market for loanable funds brings savers and borrowers together. We can also represent the same idea using a mathematical model. In this video, learn about the savings and investment identity.

Economists typically focus on three kinds of unemployment: cyclical, frictional, and structural. Learn about them, and how they relate to the business cycle, in this video.

The market for loanable funds brings savers and borrowers together. We can also represent the same idea using a mathematical model. In this video, learn about the savings and investment identity.

Demand for normal goods increases when income increases, but demand for inferior goods decreases when income increases. In this video, we use the example of a computer and a car to describe the concepts of normal goods and inferior goods and show how a change in income affects the demand for each using a graph of the demand curve. Created by Sal Khan.

Positive statements are fact-based, but normative statements are based on opinions. In this video, learn about the distinction between positive statements and normative statements, and why economists emphasize positive analysis vs. normative analysis, as well as how to identify positive statements vs. normative statements.

Opportunity cost is the value of something given up to obtain something else. In this video, we explore the definition of opportunity cost, how to calculate opportunity cost, and how the PPC illustrates opportunity cost. Created by Sal Khan.

In this video, we use the PPCs for two different countries that each produce two goods in order to create an output table based on the data in the graph. We then use the output table to determine the opportunity costs of producing each good. Finally, we determine which country has a comparative advantage in each good.