In this paper, the distinction between nominal and real income is highlighted by positing the existence of an imaginary “real dollar store.” In this store, all items are sold at a price of one dollar in the base year and the price of each is indexed to the cost of living. Hence, such...

In this paper, a set of simple numerical examples are used to illustrate the essence of the life cycle-permanent income hypothesis and Ricardian equivalence. The level of mathematical sophistication required of the reader is nothing more than grade school arithmetic. Since the simple Keynesian...

In this paper, it will be demonstrated that a "dollar for dollar" crowding out of national investment caused by increased government spending is not just something that occurs within classical macroeconomic models. The reason for this is that in a closed economy Keynesian cross model with...

In the last thirty-five years, the course in intermediate macroeconomics has become more difficult, both for the student to learn and the instructor to teach. In this paper, some simpler approaches are presented to teaching the following topics: the distinction between private, public, and...

John Taylor has found that entertaining his students is an effective tool for economic education in his classroom teaching. The success of Freakonomics has demonstrated that how we package the economic toolkit can be not only educational but profitable. In this paper, it is demonstrated how the...