Principles of Macroeconomics, 13th
Edition by Karl E. Case
Complete Chapter Solutions Manual
are included (Ch 1 to 21)
** Immediate Download
** Swift Response
** All Chapters included
** Solution Sheets
,Table of Contents are given below
1.The Scope and Method of Economics
2.The Economic Problem: Scarcity and Choice
3.Demand, Supply, and Market Equilibrium
4.Demand and Supply Applications
5.Introduction to Macroeconomics
6.Measuring National Output and National Income
7.Unemployment, Inflation, and Long-Run Growth
8.Aggregate Expenditure and Equilibrium Output
9.The Government and Fiscal Policy
10.Money, the Federal Reserve, and the Interest Rate
11.The Determination of Aggregate Output, the Price Level, and the
Interest Rate
12.Policy Effects and Cost Shocks in the AS/AD Model
13.The Labor Market in the Macroeconomy
14.Financial Crises, Stabilization, and Deficits
15.Household and Firm Behavior in the Macroeconomy: A Further Look
16.Long-Run Growth
17.Alternative Views in Macroeconomics
18.International Trade, Comparative Advantage, and Protectionism
19.Open-Economy Macroeconomics: The Balance of Payments and
Exchange Rates
20.Economic Growth in Developing Economies
21.Critical Thinking about Research
,Solutions Manual organized in reverse order, with the last chapter displayed first, to ensure that all chapters are
included in this document. (Complete Chapters included Ch21-1)
by Tony Lima, California State University, East Bay, Hayward, CA
CHAPTER OUTLINE AND LEARNING OBJECTIVES
Selection Bias p. 403 [723]
Give some examples of studies that might suffer from selection bias.
Causality p. 404 [724]
Understand the difference between correlation and causation.
Statistical Significance p. 411 [731]
Understand how researchers decide whether their results are meaningful.
Regression Analysis Quotas p. 412 [732]
Understand how regression analysis can be used for both estimation and testing.
Visit www.MyLabEconomics.com for current examples, news articles, and teaching tips.
292 Copyright © 2020 Pearson Education, Inc.
, Chapter 21 [36] Critical Thinking about Research 293
DETAILED CHAPTER OUTLINE
I. Introduction, page 402 [722]
A. Economics is about measurement. We cannot make good economic policy without
estimates of the quantitative impacts a policy change will have on a market, a firm,
consumers, or the entire economy.
B. Economists use a variety of statistical methods to estimate these impacts. This chapter is
a brief introduction to an entire important field of economics called econometrics.
TEACHING TIP: When you introduce this chapter, mention to the class that those who think this material is
interesting should at least consider taking more economics classes.
II. Selection Bias, pages 403–404 [723–724]
Learning Objectives: Give some examples of studies that might suffer from selection bias.
A. Selection bias occurs when the sample used is not random.
B. Survivor bias exists when a sample includes only observations which have remained in
the sample over time making that sample unrepresentative of the broader population.
C. Examples of selection bias are everywhere. For example, some studies have shown that
students in charter schools do better than those in public schools. But parents who
register for the charter school lottery are very likely to be intensely interested in their
childrens' education. Thus students and parents may self-select with charter schools
attracting students with greater motivation.
D. One basic source of selection bias is distinguishing between causality and the choices
people make.
III. Causality, pages 404–410 [724–730]
Learning Objectives: Understand the difference between correlation and causation.
A. Correlation Versus Causation
1. When two variables are correlated their values tend to move together.
a. If the two variables move in the same direction they are positively
correlated.
b. If the two variables move in opposite directions they are negatively
correlated.
TEACHING TIP: Decades ago I was assigned to 8 am classes five days a week. To get to school on time I
got out of bed at 5:30. And every morning as I was getting out of bed the sun came up. Clearly there was a
strong positive correlation. But no one would claim that my getting out of bed caused the sun to rise.
2. Bleaching your hair will not make your eyes blue. And buying a minivan will not
cause you to have more children.
TEACHING TIP: A few years back I went to my niece's wedding in Omaha. A relative who was sitting next
to me said, “I didn't know there were this many blonde women in Omaha.” I replied, “There aren't.”
3. Identifying causality is critical for policy work. If sugary drinks cause obesity,
taxes on those drinks make sense. But if obesity causes people to crave sugary
drinks, taxes won't do much good.
Copyright © 2020 Pearson Education, Inc.
Edition by Karl E. Case
Complete Chapter Solutions Manual
are included (Ch 1 to 21)
** Immediate Download
** Swift Response
** All Chapters included
** Solution Sheets
,Table of Contents are given below
1.The Scope and Method of Economics
2.The Economic Problem: Scarcity and Choice
3.Demand, Supply, and Market Equilibrium
4.Demand and Supply Applications
5.Introduction to Macroeconomics
6.Measuring National Output and National Income
7.Unemployment, Inflation, and Long-Run Growth
8.Aggregate Expenditure and Equilibrium Output
9.The Government and Fiscal Policy
10.Money, the Federal Reserve, and the Interest Rate
11.The Determination of Aggregate Output, the Price Level, and the
Interest Rate
12.Policy Effects and Cost Shocks in the AS/AD Model
13.The Labor Market in the Macroeconomy
14.Financial Crises, Stabilization, and Deficits
15.Household and Firm Behavior in the Macroeconomy: A Further Look
16.Long-Run Growth
17.Alternative Views in Macroeconomics
18.International Trade, Comparative Advantage, and Protectionism
19.Open-Economy Macroeconomics: The Balance of Payments and
Exchange Rates
20.Economic Growth in Developing Economies
21.Critical Thinking about Research
,Solutions Manual organized in reverse order, with the last chapter displayed first, to ensure that all chapters are
included in this document. (Complete Chapters included Ch21-1)
by Tony Lima, California State University, East Bay, Hayward, CA
CHAPTER OUTLINE AND LEARNING OBJECTIVES
Selection Bias p. 403 [723]
Give some examples of studies that might suffer from selection bias.
Causality p. 404 [724]
Understand the difference between correlation and causation.
Statistical Significance p. 411 [731]
Understand how researchers decide whether their results are meaningful.
Regression Analysis Quotas p. 412 [732]
Understand how regression analysis can be used for both estimation and testing.
Visit www.MyLabEconomics.com for current examples, news articles, and teaching tips.
292 Copyright © 2020 Pearson Education, Inc.
, Chapter 21 [36] Critical Thinking about Research 293
DETAILED CHAPTER OUTLINE
I. Introduction, page 402 [722]
A. Economics is about measurement. We cannot make good economic policy without
estimates of the quantitative impacts a policy change will have on a market, a firm,
consumers, or the entire economy.
B. Economists use a variety of statistical methods to estimate these impacts. This chapter is
a brief introduction to an entire important field of economics called econometrics.
TEACHING TIP: When you introduce this chapter, mention to the class that those who think this material is
interesting should at least consider taking more economics classes.
II. Selection Bias, pages 403–404 [723–724]
Learning Objectives: Give some examples of studies that might suffer from selection bias.
A. Selection bias occurs when the sample used is not random.
B. Survivor bias exists when a sample includes only observations which have remained in
the sample over time making that sample unrepresentative of the broader population.
C. Examples of selection bias are everywhere. For example, some studies have shown that
students in charter schools do better than those in public schools. But parents who
register for the charter school lottery are very likely to be intensely interested in their
childrens' education. Thus students and parents may self-select with charter schools
attracting students with greater motivation.
D. One basic source of selection bias is distinguishing between causality and the choices
people make.
III. Causality, pages 404–410 [724–730]
Learning Objectives: Understand the difference between correlation and causation.
A. Correlation Versus Causation
1. When two variables are correlated their values tend to move together.
a. If the two variables move in the same direction they are positively
correlated.
b. If the two variables move in opposite directions they are negatively
correlated.
TEACHING TIP: Decades ago I was assigned to 8 am classes five days a week. To get to school on time I
got out of bed at 5:30. And every morning as I was getting out of bed the sun came up. Clearly there was a
strong positive correlation. But no one would claim that my getting out of bed caused the sun to rise.
2. Bleaching your hair will not make your eyes blue. And buying a minivan will not
cause you to have more children.
TEACHING TIP: A few years back I went to my niece's wedding in Omaha. A relative who was sitting next
to me said, “I didn't know there were this many blonde women in Omaha.” I replied, “There aren't.”
3. Identifying causality is critical for policy work. If sugary drinks cause obesity,
taxes on those drinks make sense. But if obesity causes people to crave sugary
drinks, taxes won't do much good.
Copyright © 2020 Pearson Education, Inc.
