PART 1: INTRODUCTION

1. Getting Started

2. The U.S. and Global Economies

3. The Economic Problem

4. Demand and Supply

PART 2: MONITORING THE MACROECONOMY

5. GDP: A Measure of Total Production Income

6. Jobs and Unemployment

7. The CPI and the Cost of Living

PART 3: THE REAL ECONOMY

8. Potential GDP and the Natural Unemployment Rate

9. Economic Growth

10. Finance, Saving, and Investment

PART 4: THE MONEY ECONOMY

11. The Monetary System

12. Money, Interest, and Inflation

PART 5: ECONOMIC FLUCTUATIONS

13. Aggregate Supply and Aggregate Demand

14. Aggregate Expenditure Multiplier

15. The Short-Run Policy Tradeoff

PART 6: PRICES, PROFITS, AND INDUSTRY PERFORAMANCE

16. Fiscal Policy

17. Monetary Policy

18. International Trade Policy

19. International Finance

This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States.

About the book

Content has been fine-tuned to reflect the current economy

• NEW! The text reflects the dramatic economic history of today , including persistent slow economic growth, an increasing concentration of wealth, headwinds from the UK’s stagnant economy, the UK’s decision to leave the European Union, China’s slowing expansion, and enhanced concern about climate change. In the US specifically, the text covers the increasing loss of jobs to offshore companies, the political popularity of trade protection, financial demands from an aging population, a dysfunctional congress with rising government debt, and a slow, decade-long recovery from the financial crisis.
• UPDATED! Each chapter contains small changes to enhance clarity and currency, and every example reflects the most recent current events.

Notable content changes in macro

• UPDATED! The text explores the question of whether we are back at full employment. In seeking an answer, the chapter adds to the standard list of job market indicators—the new Z-Pop measure of the percentage of the population that is fully occupied (Chapter 22).
• NEW! Data on the new Sticky Price CPI and its related Flexible Price CPI as an attempt to measure the underlying inflation rate (Chapter 23).
• NEW! Covers who gets the benefits of economic growth with a dramatic demonstration of the gains by the top one percent compared with the gains of the other 99 percent (Chapter 25).
• NEW! and UPDATED! Explains the concepts of fiscal imbalance and generational imbalance, and the magnitudes of these imbalances in the US today (Chapter 32).
• NEW! Discusses the rules versus discretion dichotomy and a description of both the Taylor interest rate rule and the McCallum monetary base growth rate rule (Chapter 33).

Outcome-driven teaching and learning

• REVISED! The text has been revised to provide an outcome-driven teaching and learning program to strengthen problem-solving, critical-thinking, and decision-making skills.

Focus on core concepts

• Each chapter concentrates on a manageable number of ideas, usually 3 to 4, with each reinforced several times throughout the text. This patient approach helps guide students through unfamiliar terrain and focus them on the most important concepts.

Clear organization helps students embrace and understand the material

• The text leaves room for flexibility for professors who want to cover it in a different order.

Diagrams aid in learning difficult concepts

• Diagrams make consistent use of color to show the direction of shifts, and detailed, numbered captions guide students through actions step-by-step.
• Material is presented in graphs, words, and tables to appease students who are apprehensive about working with graphs.

Real-world connections bring theories to life

• Eye On boxes offer fresh examples that help students see that economics is everywhere. Each chapter opening box is answered by an Eye On box that helps students see the economic factors behind a key issue facing the world and highlights major aspects of the chapter.
• Eye on the US Economy relates example

About the book

Content has been fine-tuned to reflect the current economy

• The text reflects the dramatic economic history of today, including persistent slow economic growth, an increasing concentration of wealth, headwinds from the UK’s stagnant economy, the UK’s decision to leave the European Union, China’s slowing expansion, and enhanced concern about climate change. In the US specifically, the text covers the increasing loss of jobs to offshore companies, the political popularity of trade protection, financial demands from an aging population, a dysfunctional congress with rising government debt, and a slow, decade-long recovery from the financial crisis.
• Each chapter contains small changes to enhance clarity and currency, and every example reflects the most recent current events.

Notable content changes in macro

• The text explores the question of whether we are back at full employment. In seeking an answer, the chapter adds to the standard list of job market indicators—the new Z-Pop measure of the percentage of the population that is fully occupied (Chapter 22).
• Data on the new Sticky Price CPI and its related Flexible Price CPI as an attempt to measure the underlying inflation rate (Chapter 23).
• Covers who gets the benefits of economic growth with a dramatic demonstration of the gains by the top one percent compared with the gains of the other 99 percent (Chapter 25).
• Explains the concepts of fiscal imbalance and generational imbalance, and the magnitudes of these imbalances in the US today (Chapter 32).
• Discusses the rules versus discretion dichotomy and a description of both the Taylor interest rate rule and the McCallum monetary base growth rate rule (Chapter 33).

Outcome-driven teaching and learning

• The text has been revised to provide an outcome-driven teaching and learning program to strengthen problem-solving, critical-thinking, and decision-making skills.

MyLab^TM Economics not included. Students, if MyLab is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN and course ID. MyLab should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information.

• Animated Graphs in MyLab Economics accompany many of the key graphs and figures in the text, and have been updated with real-time data from FREDTM (Federal Reserve Economic Data) —a comprehensive, up-to-date data set maintained by the Federal Reserve Bank of St. Louis. Students can display a pop-up graph that shows new data plotted in the graph, to better understand how to work with data and understand how including new data affects graphs. More dynamic than graphs on a printed page, these animated ones help students understand shifts in curves, movements along curves, and changes in equilibrium values.
• Math Review Exercises. MyLab Economics now offers a rich array of assignable exercises covering fundamental math concepts geared specifically to principles and intermediate economics students. Aimed at increasing student confidence and success, our new math skills review Chapter R is accessible from the assignment manager and contains over 150 graphing, algebra, and calculus exercises for homework, quiz, and test use. Offering economics students warm-up math assignments, math remediation, or math exercises as part of any content assignment has never been easier!