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:Show the relationship between production costs and comparative advantageIdentify situations of mutually beneficial tradeIdentify trade benefits by considering opportunity costs

By the end of this section, you will be able to:Explain the aggregate supply curve and how it relates to real GDP and potential GDPExplain the aggregate demand curve and how it is influenced by price levelsInterpret the aggregate demand/aggregate supply modelIdentify the point of equilibrium in the aggregate demand/aggregate supply modelDefine short run aggregate supply and long run aggregate supply

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:Explain merchandise trade balance, current account balance, and unilateral transfersIdentify components of the U.S. current account balanceCalculate the merchandise trade balance and current account balance using import and export data for a country

By the end of this section, you will be able to:Explain real GDP, recessionary gaps, and inflationary gapsRecognize the Keynesian AD/AS modelIdentify the determining factors of both consumption expenditure and investment expenditureAnalyze the factors that determine government spending and net exports

By the end of this section, you will be able to:Contrast traditional economies, command economies, and market economiesExplain gross domestic product (GDP)Assess the importance and effects of globalization