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 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:Identify the neoclassical zone, the intermediate zone, and the Keynesian zone in the aggregate demand/aggregate supply modelUse an aggregate demand/aggregate supply model as a diagnostic test to understand the current state of the economy

By the end of this section, you will be able to:Explain Say’s Law and understand why it primarily applies in the long runExplain Keynes’ Law and understand why it primarily applies in the short run