The brief and student-friendly approach of this book boils economics down to its essentials, by considering what is truly important for students to learn in their first course in economics.

In keeping with the authors’ philosophy of showing students the power of economic tools and the importance of economic ideas, this edition pays careful attention to regional and global policies and economic issues – including the impacts of the ongoing global financial crisis, inflation, unemployment, interest rates, and monetary and fiscal policy. Continuing global financial uncertainty and the current state of the Australian economy provide a constant supply of new material, re-evaluated models, and policy changes and updates for the Principles of Macroeconomics text.

The book emphasises the material that students should and do find interesting about the study of the economy, resulting in a focus on applications and policy, and less on formal economic theory.

Principles of Macroeconomics, 7e encourages students to make their own judgements by presenting both sides of the debate on five controversial issues facing policymakers: the proper degree of policy activism in response to the business cycle, the choice between rules and discretion in the conduct of monetary policy, the desirability of reaching zero inflation, the importance of balancing the government’s budget, and the need for tax reform to encourage saving.

This edition is supported with rich digital resources including MindTap, Aplia, and CourseMate, comprising flashcards, graphing workshops, games, quizzes, and videos, as well as referring students to the online Search me! database.

Part 1: Introduction
1. Ten lessons from economics
2. Thinking like an economist
3. Interdependence and the gains from trade

Part 2: Supply and demand: how markets work
4. The market forces of supply and demand

Part 3: The data of macroeconomics
5. Measuring a nation’s income
6. Measuring the cost of living

Part 4: The real economy in the long run
7. Production and growth
8. Saving, investment and the financial system
9. The natural rate of unemployment

Part 5: Money and prices in the long run
10. The monetary system
11. Inflation: Its causes and costs

Part 6: The macroeconomics of open economies
12. Open-economy macroeconomics: Basic concepts
13. A macroeconomic theory of the open economy

Part 7: Short-run economic fluctuations
14. Aggregate demand and aggregate supply
15. The influence of monetary and fiscal policy on aggregate demand
16. The short-run trade-off between inflation and unemployment
17. Global Financial Crisis 2008 and beyond

Part 8: Final thoughts
18. Five debates over macroeconomic policy

The brief and student-friendly approach of this book boils economics down to its essentials, by considering what is truly important for students to learn in their first course in economics. In keeping with the authors’ philosophy of showing students the power of economic tools and the importance of economic ideas, this edition pays careful attention to regional and global policies and economic issues – including the impacts of the ongoing global financial crisis, inflation, unemployment, interest rates, and monetary and fiscal policy. Continuing global financial uncertainty and the current state of the Australian economy provide a constant supply of new material, re-evaluated models, and policy changes and updates for the Principles of Macroeconomics text. The book emphasises the material that students should and do find interesting about the study of the economy, resulting in a focus on applications and policy, and less on formal economic theory. Principles of Macroeconomics, 7e encourages students to make their own judgements by presenting both sides of the debate on five controversial issues facing policymakers: the proper degree of policy activism in response to the business cycle, the choice between rules and discretion in the conduct of monetary policy, the desirability of reaching zero inflation, the importance of balancing the government’s budget, and the need for tax reform to encourage saving. This edition is supported with rich digital resources including MindTap, Aplia, and CourseMate, comprising flashcards, graphing workshops, games, quizzes, and videos, as well as referring students to the online Search me! database. Refreshed topical information on the GFC, 'Global Financial Crisis 2008 and beyond', in light of the European debt crises, austerity and stimulus Updated cases and economic data keeps the material current and relevant for students New multiple choice questions to test student knowledge and comprehension *NEW* Multiple choice questions Prominent economists with extensive undergraduate teaching experience have written a student-friendly text that explains clearly and explores contemporary issues. Applications and policy appear alongside formal economic theory Chapter objectives define and reinforce content, while quick quizzes allow students to check their comprehension after they read each major section. Key concepts are listed at the end of the chapter and defined in the margin to help students grasp new terminology. End-of-chapter Summaries, Questions for Review as well as Problems and Applications to reinforce chapter content and encourage critical thinking Chapter focusing on the GFC written by an Australian economist Current cases provide practical illustrations of important concepts