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:Discuss the components of economic growth, including physical capital, human capital, and technologyExplain capital deepening and its significanceAnalyze the methods employed in economic growth accounting studiesIdentify factors that contribute to a healthy climate for economic growth

By the end of this section, you will be able to:Identify the role of labor productivity in promoting economic growthAnalyze the sources of economic growth using the aggregate production functionMeasure an economy’s rate of productivity growthEvaluate the power of sustained growth

By the end of this section, you will be able to:Understand the arguments for and against requiring the U.S. federal budget to be balancedConsider the long-run and short-run effects of a federal budget deficit

By the end of this section, you will be able to:Analyze the growth policies of low-income countries seeking to improve standards of livingAnalyze the growth policies of middle-income countries, particularly the East Asian Tigers with their focus on technology and market-oriented incentivesAnalyze the struggles facing economically-challenged countries wishing to enact growth policiesEvaluate the success of sending aid to low-income countries

By the end of this section, you will be able to:Explain crowding out and its effect on physical capital investmentExplain the relationship between budget deficits and interest ratesIdentify why economic growth is tied to investments in physical capital, human capital, and technology