As in previous editions this book begins with business cycles, unemployment, and inflation. Experience teaches us that students want to understand what is happening today, and particularly why the Global Economic Crisis occurred and why the unemployment rate was above 9 percent during the first two years of the economic recovery. The curiosity of students about what is wrong with today’s economy engages them with the subject matter, in no small measure because they know that the economy will influence their job prospects after graduation.
This book provides an immediate payoff to that curiosity within the first few chapters by placing its treatment of business cycles first. The economics of long term growth are important but should come later, after students learn abut the models, answers, and puzzles surrounding business cycles.
Part 1 Introduction and Measuremendt
Part 2 The Short Run: business Cycles and Policy Responses
Part 3 The Price Level, Inflation, and Unemployment
Part 4 The Long Run: Economic Growth, Success, and Failure
Part 5 Monetary Policy and the Sources of Instability
Part 6 The Evolution of Macroeconomic Ideas