Table of Content

PART 1 Introduction and Key Principles

1 Introduction: What Is Economics?
2 The Key Principles of Economics
3 Exchange and Markets
4 Demand, Supply, and Market Equilibrium

PART 2 The Basic Concepts in Macroeconomics

5 Measuring a Nation's Production and Income
6 Unemployment and Inflation

PART 3 The Economy in the Long Run

7 The Economy at Full Employment
8 Why Do Economies Grow?

PART 4 Economic Fluctuations and Fiscal Policy

9 Aggregate Demand and Aggregate Supply
10 Fiscal Policy
11 The Income-Expenditure Model
12 Investment and Financial Markets

PART 5 Money, Banking, and Monetary Policy

13 Money and the Banking System
14 The Federal Reserve and Monetary Policy

PART 6 Inflation, Unemployment, and Economic Policy

15 Modern Macroeconomics: From the Short Run to the Long Run
16 The Dynamics of Inflation and Unemployment
17 Macroeconomic Policy Debates

PART 7 The International Economy

18 International Trade and Public Policy
19 The World of International Finance

Salient Features

Draw Students into the Material with - Chapter-opening questions spark students' interest on important economic concepts. After drawing students into the material, these opening questions are paired with in-chapter applications that bring the economic concept to life.


Demystify the Tools of Economics with The 5 key principles of economics that show students the logic of economic reasoning and demystify the tools of economics. The 5 principles are first presented in Chapter 2, and then the authors return to these 5 principles throughout the text to remind students of the underlying logic behind newly presented concepts:
1) The Principle of Opportunity Cost
2) The Marginal Principle (comparing marginal benefits and marginal costs)
3) The Principle of Diminishing Returns
4) The Principle of Voluntary Exchange
5) The Real-Nominal Principle (distinguishing real from nominal magnitudes)


Economic experiments—actively involve the student in role-playing as consumers, producers, and policy makers.

Stimulates student interest and are easy for professors to use and implement in a classroom of any size. See Chapter 4, Supply, Demand and Market Equilibrium after the e-o-c material.
The end-of-chapter material is organized around the major sections of the chapter and its "applications" so the students can better organize his/her study plan.