Economics, far from being the dismal science, offers us valuable lessons that can be applied to our everyday experiences. At its heart, economics is the science of choice and a study of economic principles allows us to achieve a more informed understanding of how we make our choices; whether these choices occur in our everyday life, our work environment, or at the national or international level.
This two-volume text represents a common sense approach to basic macroeconomics. Volume two,Policies and Perspectives, delivers clear statements of essential economic principles, supported by real-world examples and uncluttered by extraneous material;the goal is to provide a concise readable primer that covers the substance of macroeconomic theory and policy. The text uses a single unifying tool—aggregate demand and aggregate supply analysis—to probe differing perspectives on macroeconomic policies. The text looks at fiscal policy and short-run stabilization;the financial sector and monetary policy; the international sector;and the sources of economic growth.