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:

Understand how fiscal policy and monetary policy are interconnected
Explain the three lag times that often occur when solving economic problems
Identify the legal and political challenges of responding to an economic problem

By the end of this section, you will be able to:

Explain the national saving and investment identity in terms of demand and supply
Evaluate the role of budget surpluses and trade surpluses in national saving and investment identity