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 the Phillips curve, noting its impact on the theories of Keynesian economicsGraph a Phillips curveIdentify factors that cause the instability of the Phillips curveAnalyze the Keynesian policy for reducing unemployment and inflation

By the end of this section, you will be able to:Discuss why and how economists measure inflation expectationsAnalyze the impacts of fiscal and monetary policy on aggregate supply and aggregate demandExplain the neoclassical Phillips curve, noting its tradeoff between inflation and unemploymentIdentify clear distinctions between neoclassical economics and Keynesian economics