I. Introduction
1. The Policy and Practice of Macroeconomics    
2. Measuring Macroeconomic Data    

II. Macroeconomic Basics    
3. Aggregate Production and Productivity    
4. Saving and Investment in Closed and Open Economies    
5. Money and Inflation    

III. Long-Run Economic Growth    
6. The Sources of Growth and the Solow Model    
7. Drivers of Growth: Technology, Policy, and Institutions    

IV. Business Cycles: The Short Run    
8. Business Cycles: An Introduction    
9. The IS Curve    
10. Monetary Policy and Aggregate Demand    
11. Aggregate Supply and the Phillips Curve    
12. The Aggregate Demand and Supply Model    
13. Macroeconomic Policy and Aggregate Demand and Supply Analysis    

V. Finance and the Macroeconomy    
14. The Financial System and Economic Growth    
15. Financial Crises and the Economy    

VI. Macroeconomic Policy    
16. Fiscal Policy and the Governmnt Budget    
17. Exchange Rates and International Economic Policy    

VII. Microeconomic Foundations of Macroeconomics    
18. Consumption and Saving    
19. Investment    
20. The Labor Market, Employment, and Unemployment    

VIII. Modern Business Cycle Analysis and Macroeconomic Policy    
21. The Role of Expectations in Macroeconomic Policy
22. Modern Business Cycle Theory

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Personalize learning with MyEconLab

NEW! An enhanced Pearson e-text for Macroeconomics: Policy and Practice, Second Edition meets tech-savvy students halfway for a better learning experience.
• All of the text’s content is available to students whenever they want, wherever they are via an iPad app.
• Instructors and students can highlight, bookmark, search the glossary, and take notes—all directly within the eText.
• A series of 100+ author mini-lectures accompany the analytic graphs in the text. Accessible with just a click, these mini-lectures serve as invaluable study tools for students who typically learn better when they see and hear economic analysis than when they read it. NEW! MyEconLab for the Second Edition of Macroeconomics includes a number of tools that enable real-time data analysis.
• Many of the in-text figures allow students to see the latest data by way of the Federal Reserve Bank of St. Louis’s FRED database.     
• In addition, new real-time data analysis problems prompt students to download data from the FRED website, and then use it to answer questions about current issues. Because MyEconLab communicates directly with the FRED site, students see new data every time it is posted to FRED. As a result, these real-time data analysis exercises offer a no-fuss solution for instructors who want to make the most recent data a central part of their macroeconomics course.


Enable students to connect theory to practice

NEW! Substantial additional material on business cycle analysis makes it easier for students to understand the dynamic aggregate demand/aggregate demand model.
• A new section on alternative view of the business cycle in Chapter 8 distinguishes the long-run trend from deviations from this trend and introduces the concept of the output gap
• Coverage of financial frictions has been integrated into the dynamic aggregate demand and aggregate supply model at the outset, and financial frictions are treated as an additional factor that shifts the IS curve (in Chapter 10) and as a factor that shifts the AD curve (in Chapter 12)
• A new section clarifies the difference between movements along the MP curve from shifts in the MP curve.
Foster interest via engaging features and updated content

NEW! The Second Edition reflects the recent explosion of research on economic growth as economists attempt to address the question of why some countries stay poor, while others prosper. A new introductory section in Chapter 6 discusses economic growth around the world. Chapter 6 has also been updated to include new figures that show how output per worker changes over time when there is a change in the saving rate, population growth, or technology.

NEW! Coverage of non-conventional monetary policy and the zero lower bound helps students understand current issues in macroeconomics. In recent years, monetary policymakers have entered a brave new world in which they have had to resort to nonconventional monetary policy because the policy interest rate—the federal funds rate in the United States—has hit a floor of zero (the so-called “zero lower bound”). The policy rate cannot be driven lower, thus making conventional monetary policy infeasible. Nonconventional monetary policy at the zero lower bound, such as quantitative easing, has become very controversial and is quite interesting to students. The Second Edition contains extensive discussion of this topic, with the following new material:
• A new application, “Quantitative Easing and the Money Supply, 2007–2013” (Chapter 5)
• A new section on monetary policy at the zero lower bound, which uses the dynamic aggregate demand and aggregate supply model to explain how the zero lower bound affects the conduct of monetary policy (Chapter 13)
• A new Policy and Practice case, “Abenomics and the Shift in Japanese Monetary Policy in 2013” (Chapter 13)
• A new Policy and Practice case, “Nonconventional Monetary Policy and Quantitative Easing During the Global Financial Crisis” (Chapter 15)
• A new section on fiscal multipliers at the zero lower bound, which explains why fiscal multipliers are likely to be larger at the zero lower bound (Chapter 16)
• A new section on nominal GDP targeting (Chapter 21)
NEW! The Second Edition includes new material on the Euro Crisis, a continuing drama since 2010 and a key contemporary topic.
• A new section in Chapter 16 explains the dynamics of these sovereign debt crises.
• Three new Policy and Practice cases in Chapters 16 and 17—entitled “The European Sovereign Debt Crisis,” “The Debate Over Fiscal Austerity in Europe,” and “Will the Euro Survive?”—explore the impact of specific policies on the debt crises in the European Union.