Balancing classical and Keynesian economics, this work uses the modern approach of presenting long-run analysis before short-run fluctuations, and covers the large open economy in depth. This edition includes a revised section that reflects the evolving nature of courses.

Table of Contents

Part 1 Introduction: the science of macroeconomics; the data of macroeconomics. Part 2 The economy in the long run: national income - where it comes from and where it goes; economic growth I; economic growth II; unemployment; money and inflation; the open economy. Part 3 The economy in the short run: introduction to economic fluctuations; aggregate demand I; aggregate demand II; aggregate demand in the open economy; aggregate supply. Part 4 Macroeconomic policy debates: stabilization policy; government debt and budget deficits. Part 5 More on the macroeconomics behind macroeconomic: consumption; investment; money supply and money demand; advances in the theory of economic fluctuations; epilogue - what we know, what we don't.