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:Describe how the federal government can use discretionary fiscal policy to stabilize the economyIdentify examples of automatic stabilizersUnderstand how a government can use standardized employment budget to identify automatic stabilizers

By the end of this section, you will be able to:Explain the nature and causes of unemploymentAnalyze the natural rate of unemployment and the factors that affect itIdentify how undeveloped labor markets can result in the same hardships as unemployment