International Finance Theory and Policy is built on Steve Suranovic's belief that to understand the international economy, students need to learn how economic models are applied to real world problems. It is true what they say, that ”economists do it with models.“ That's because economic models provide insights about the world that are simply not obtainable solely by discussion of the issues.

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 demand, quantity demanded, and the law of demandIdentify a demand curve and a supply curveExplain supply, quantity supplied, and the law of supplyExplain equilibrium, equilibrium price, and equilibrium quantity

By the end of this section, you will be able to:Explain the national saving and investment identity in terms of demand and supplyEvaluate the role of budget surpluses and trade surpluses in national saving and investment identity

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