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.

In this Unit, you will learn about:How Individuals Make Choices Based on Their Budget ConstraintThe Production Possibilities Frontier and Social ChoicesConfronting Objections to the Economic Approach

By the end of this section, you will be able to:Interpret production possibilities frontier graphsContrast a budget constraint and a production possibilities frontierExplain the relationship between a production possibilities frontier and the law of diminishing returnsContrast productive efficiency and allocative efficiencyDefine comparative advantage

By the end of this section, you will be able to:Explain how inflation can cause redistributions of purchasing powerIdentify ways inflation can blur the perception of supply and demandExplain the economic benefits and challenges of inflation

By the end of this section, you will be able to:Explain frictional and structural unemploymentAssess relationships between the natural rate of employment and potential real GDP, productivity, and public policyIdentify recent patterns in the natural rate of employmentPropose ways to combat unemployment

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