Foundations of Macroeconomics, Global Edition (8^th Ed.)

For courses in principles of macroeconomics.

Guide students through the economic principles that will influence their financial decisions

Foundations of Macroeconomics , 8th Edition introduces students to the economic principles they can use to navigate the financial decisions of their futures. Each chapter concentrates on a manageable number of ideas, usually 3 to 4, with each reinforced several times throughout the text. This patient approach helps guide students through unfamiliar terrain and focus them on the most important concepts.

The text does four core things to help students grasp and apply economic principles: it motivates with compelling issues and questions, focuses on core ideas, offers concise points, and encourages learning with activities and practice questions. After completing this text, students will have the foundational knowledge of how the economy works and can apply it to their lives going forward.

PART 1: INTRODUCTION

1. Getting Started

2. The U.S. and Global Economies

3. The Economic Problem

4. Demand and Supply

PART 2: MONITORING THE MACROECONOMY

5. GDP: A Measure of Total Production Income

6. Jobs and Unemployment

7. The CPI and the Cost of Living

PART 3: THE REAL ECONOMY

8. Potential GDP and the Natural Unemployment Rate

9. Economic Growth

10. Finance, Saving, and Investment

PART 4: THE MONEY ECONOMY

11. The Monetary System

12. Money, Interest, and Inflation

PART 5: ECONOMIC FLUCTUATIONS

13. Aggregate Supply and Aggregate Demand

14. Aggregate Expenditure Multiplier

15. The Short-Run Policy Tradeoff

PART 6: PRICES, PROFITS, AND INDUSTRY PERFORAMANCE

16. Fiscal Policy

17. Monetary Policy

18. International Trade Policy

19. International Finance

This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States.

About the book

Content has been fine-tuned to reflect the current economy

• NEW! The text reflects the dramatic economic history of today , including persistent slow economic growth, an increasing concentration of wealth, headwinds from the UK’s stagnant economy, the UK’s decision to leave the European Union, China’s slowing expansion, and enhanced concern about climate change. In the US specifically, the text covers the increasing loss of jobs to offshore companies, the political popularity of trade protection, financial demands from an aging population, a dysfunctional congress with rising government debt, and a slow, decade-long recovery from the financial crisis.
• UPDATED! Each chapter contains small changes to enhance clarity and currency, and every example reflects the most recent current events.

Notable content changes in macro

• UPDATED! The text explores the question of whether we are back at full employment. In seeking an answer, the chapter adds to the standard list of job market indicators—the new Z-Pop measure of the percentage of the population that is fully occupied (Chapter 22).
• NEW! Data on the new Sticky Price CPI and its related Flexible Price CPI as an attempt to measure the underlying inflation rate (Chapter 23).
• NEW! Covers who gets the benefits of economic growth with a dramatic demonstration of the gains by the top one percent compared with the gains of the other 99 percent (Chapter 25).
• NEW! and UPDATED! Explains the concepts of fiscal imbalance and generational imbalance, and the magnitudes of these imbalances in th