Principles of Macroeconomics 2e covers the scope and sequence of most introductory economics courses. The text includes many current examples, which are handled in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition has been thoroughly revised to increase clarity, update data and current event impacts, and incorporate the feedback from many reviewers and adopters.Changes made in Principles of Macroeconomics 2e are described in the preface and the transition guide to help instructors transition to the second edition.

By the end of this section, you will be able to:Explain how expansionary fiscal policy can shift aggregate demand and influence the economyExplain how contractionary fiscal policy can shift aggregate demand and influence the economy

In this chapter, you will learn about:Macroeconomic Perspectives on Demand and SupplyBuilding a Model of Aggregate Demand and Aggregate SupplyShifts in Aggregate SupplyShifts in Aggregate DemandHow the AD/AS Model Incorporates Growth, Unemployment, and InflationKeynes’ Law and Say’s Law in the AD/AS Model

By the end of this section, you will be able to:Evaluate the Keynesian view of recessions through an understanding of sticky wages and prices and the importance of aggregate demandExplain the coordination argument, menu costs, and macroeconomic externalityAnalyze the impact of the expenditure multiplier

By the end of this section, you will be able to:Explain the importance of potential GDP in the long runAnalyze the role of flexible pricesInterpret a neoclassical model of aggregate demand and aggregate supplyEvaluate different ways for measuring the speed of macroeconomic adjustment