THE CORE   Introduction 1. A Tour of the World   2. A Tour of the Book   The Short Run   3. The Goods Market   4. Financial Markets I 5. Goods and Financial Markets; The IS-LM Model 6. Financial Markets II   The Medium Run 7. The Labor Market 8. The Phillips Curve, the Natural Rate of Unemployment, and Inflation 9. Putting All Markets Together: From the Short to the Medium Run   The Long Run 10. The Facts of Growth 11. Saving, Capital Accumulation, and Output 12. Technological Progress and Growth 13. Technological Progress: The Short, the Medium, and the Long Runs   EXTENSIONS   Expectations 14. Financial Markets and Expectations 15. Expectations, Consumption, and Investment 16. Expectations, Output, and Policy   The Open Economy 17. Openness in Goods and Financial Markets 18. The Goods Market in an Open Economy 19. Output, the Interest Rate, and the Exchange Rate 20. Exchange Rate Regimes   Back to Policy 21. Should Policy Makers Be Restrained? 22. Fiscal Policy: A Summing Up 23. Monetary Policy: A Summing Up 24. Epilogue: The Story of Macroeconomics    

About the Book   Hallmark Features UPDATED! Figures and tables have been updated using the latest data available.     Content Changes by Chapter REVISED! Presentation of the IS-LM. The traditional treatment of monetary policy assumed that central banks chose the money supply and then let the interest rate adjust. Now however, central banks choose the interest rate and then let the money supply adjust. In terms of the IS-LM model used to describe the short run, the LM curve, instead of being upward sloping, should be treated as flat. This makes for a more realistic and a simpler model (Chapter 5). Focus on the role of the financial system in the economy. The text extends the IS-LM model to allow for two interest rates—the interest rate set by monetary policy and the cost of borrowing for people or firms, with the state of the financial system determining the relation between the two (Chapter 6). An IS-LM-PC (Phillips curve) model replaces the traditional aggregate supply and aggregate demand model, and gives a simpler and more accurate description of the role of monetary policy and of output and inflation dynamics (Chapter 9). Coverage of the constraints on monetary policy, coming from the zero lower bound, and the constraints on fiscal policy, coming from the high levels of public debt, have been added. UPDATED! Focus boxes, include: Unemployment and Happiness (Chapter 2) The Liquidity Trap in Action (Chapter 4) Bank Runs (Chapter 6) Changes in the U.S. Natural Rate of Unemployment since 1990 (Chapter 8) Okun’s Law, and Deflation in the Great Depression (Chapter 9) The Construction of PPP Numbers (Chapter 10) The Long View: Technology, Education, and Inequality (Chapter 13) The Yield Curve, the Zero Lower Bound, and Lift-off (Chapter 14) The Disappearance of Current Account Deficits in Euro Periphery Countries: Good News or Bad News? (Chapter 18) Euro Area Fiscal Rules: A Short History (Chapter 21) Money Financing and Hyperinflations, and Should You Worry about U.S. Public Debt (Chapter 22)     Also Available with MyEconLab® MyEconLab is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts. UPDATED! Real-time Data Analysis Exercises. Easy to assign and automatically graded, Real-Time Data Analysis exercises use up-to-the-minute, real-time macroeconomic data. These exercises communicate directly with the Federal Reserve Bank of St. Louis’s FRED site, so every time FRED posts new data, students see new data. As a result, Real-Time Data Analysis exercises offer a no-fuss solution for instructors who want to make the most recent data a central part of their macro course. Real-Time Data Analysis exercises are available in the latest Principles of Economics (all versions), Intermediate Macroeconomics, and Money & Banking courses. Math Review Exercises. MyEconLab now offers a rich array of assignable and auto-graded exercises covering fundamental math concepts geared to macroeconomic students. Aimed at increasing student confidence and success, our new math skills review, Chapter R, is accessible from the assignment manager and contains over 150 graphing, algebra, and calculus exercises for homework, quiz, and test use. Offering economics students warm-up math assignments, math remediation, or math exercises as part of any content assignment has never been easier!