By N. Gregory Mankiw

Mankiw's masterful textual content covers the sphere as accessibly and concisely as attainable, in a fashion that emphasizes the relevance of macroeconomics's classical roots and its present perform. that includes the newest facts, new case stories all in favour of contemporary occasions, and a couple of major content material updates, the 7th variation takes the Mankiw legacy even further. It offers the clearest, latest, such a lot obtainable direction in macroeconomics within the such a lot concise presentation possible.

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Now that the book is in its seventh edition, these individuals are too numerous to list in their entirety. However, I continue to be grateful for their willingness to have given up their scarce time to help me improve the economics and pedagogy of this text. Their advice has made this book a better teaching tool for hundreds of thousands of students around the world. I would like to mention those instructors whose recent input shaped this new edition: Jinhui Bai Georgetown University Joydeep Bhattacharya Iowa State University Ronald Cronovich Carthage College Massimiliano De Santis Dartmouth College John Driscoll Federal Reserve Board James Fackler University of Kentucky Chris Foote Federal Reserve Bank of Boston David R.

S. Economy The unemployment rate measures the percentage of people in the labor force who do not have jobs. This figure shows that the economy always has some unemployment and that the amount fluctuates from year to year. S. S. Bureau of the Census (Historical Statistics of the United States: Colonial Times to 1970). 1-2 How Economists Think Economists often study politically charged issues, but they try to address these issues with a scientist’s objectivity. The best way to become familiar with these tools is to practice using them, and this book affords you ample opportunity to do so.

Market-clearing models might not describe the economy at every instant, but they do describe the equilibrium toward which the economy gravitates. Therefore, most macroeconomists believe that price flexibility is a good assumption for studying long-run issues, such as the growth in real GDP that we observe from decade to decade. For studying short-run issues, such as year-to-year fluctuations in real GDP and unemployment, the assumption of price flexibility is less plausible. Over short periods, many prices in the economy are fixed at predetermined levels.

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