Table of Content

"I. Introduction to Economics 1. The Principles and Practice of Economics 2. Economic Methods and Economic Questions 3. Optimization: Doing the Best You Can 4. Demand, Supply, and Equilibrium II. Introduction to Macroeconomics 5. The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates 6. Aggregate Incomes III. Long-Run Growth and Development 7. Economic Growth 8. Why Isn't the Whole World Developed? IV. Equilibrium in the Macroeconomy 9. Employment and Unemployment 10. Credit Markets 11. The Monetary System V. Short-Run Fluctuations and Macroeconomic Policy 12. Short-run Fluctuations 13. Countercyclical Macroeconomic Policy VI. Macroeconomics in a Global Economy 14. Macroeconomics and International Trade 15. Open Economy Macroeconomics Web Chapter 1. Financial Decision Making Web Chapter 2. Economics of Life, Health, and the Environment Web Chapter 3. Political Economy"

Salient Features

"Three key principles — optimization, equilibrium, and empiricism — lie at the heart of the authors' approach. 1. Optimization. The first principle — that people try to choose the best available option — is optimization. Economists believe that optimization explains most choices people make, including minor decisions like deciding whether to eat a cheeseburger, and major decisions like deciding whom to date or marry. When people fail to optimize perfectly, economic reasoning can be used to analyze the mistake and to suggest a better course of action. 2. Equilibrium. Economic systems tend toward equilibrium, wherein each economic actor feels that he or she cannot do any better by picking another course of action. This principle highlights the connections among economic actors and their choices. In a state of equilibrium, consumers and purveyors of goods and services are simultaneously optimizing, and their behaviors are consequently intertwined. 3. Empiricism. While the first two key principles are conceptual, the third is methodological. Economists use data to test economic theories, learn about the world, and speak to policymakers. The emphasis on matching theories with real-world data to answer specific questions helps to show students the evidence behind the theory, making economics concrete, interesting, and fun."