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:Analyze whether monetary policy decisions should be made more democraticallyCalculate the velocity of moneyEvaluate the central bank’s influence on inflation, unemployment, asset bubbles, and leverage cyclesCalculate the effects of monetary stimulus

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:Identify three ways in which borrowing money or running a trade deficit can result in a healthy economyIdentify three ways in which borrowing money or running a trade deficit can result in a weaker economy

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:Evaluate the Keynesian view of recessions through an understanding of sticky wages and prices and the importance of aggregate demandExplain the coordination argument, menu costs, and macroeconomic externalityAnalyze the impact of the expenditure multiplier

By the end of this section, you will be able to:Contrast nominal GDP and real GDPExplain GDP deflatorCalculate real GDP based on nominal GDP values

This module covers:Measuring the Size of the Economy: Gross Domestic ProductAdjusting Nominal Values to Real ValuesTracking Real GDP over TimeComparing GDP among CountriesHow Well GDP Measures the Well-Being of Society

By the end of this section, you will be able to:Explain the importance of potential GDP in the long runAnalyze the role of flexible pricesInterpret a neoclassical model of aggregate demand and aggregate supplyEvaluate different ways for measuring the speed of macroeconomic adjustment