• Changes to the macro chapters include:

• The CPI and the Cost of Living (now Chapter 6) is moved before Jobs and Unemployment (now Chapter 7).
• Economic Growth (now Chapter 9) is moved before Investment, Saving, and the Real Interest Rate (now Chapter 10) for a more natural transition into the money chapters in Part 4.
• Coverage of loanable funds is added to Chapter 10, Investment, Saving, and the Real Interest Rate.
• The money chapters are streamlined into a single chapter—Chapter 11, The Monetary System—that focuses on monetary institutions and consists of content from Chapters 11 and 12 from the Third Edition (Money and the Monetary System and Money Creation and Control).
• Chapter 12, Money, Interest, and Inflation, is more modern, now updated to reflect what’s happening at the Fed today—the goals, intermediate targets, and instruments of monetary policy.

• Changes to overall pedagogy include:

• A new feature, Eye On Your Life, explores student-oriented applications of economics in everyday life.
• Applications are revised to be even more relevant, modern, and appealing to students.
• News analysis questions appear in the end-of-chapter problems, giving students a news summary and asking them to apply economic concepts to an issue or event.

• New content within MyEconLab includes:

• News analysis questions from the text are assignable in MyEconLab, asking students to read a news story and then answer problems that are numerical, graphing, fill-in–the-blank, and multiple-choice.
• Problem sets are substantially revised and updated to be even more synchronous with the problems in the text. Checkpoints and end-of-chapter problems in the text more accurately reflect MyEconLab’s question format. End-of-chapter questions and checkpoint problems are available in MyEconLab.

Part 1 Introduction
Chapter 1 Getting Started
Chapter 2 The U.S. and Global Economies
Chapter 3 The Economic Problem
Chapter 4 Demand and Supply

Part 2 Monitoring the Macroeconomy
Chapter 5 GDP and the Standard of Living
Chapter 6 The CPI and the Cost of Living
Chapter 7 Jobs and Unemployment

Part 3 The Real Economy
Chapter 8 Potential GDP and the Natural Unemployment Rate
Chapter 9 Economic Growth
Chapter 10 Investment, Saving, and the Real Interest Rate

Part 4 The Money Economy
Chapter 11 The Monetary System
Chapter 12 Money, Interest, and Inflation

Part 5 Economic Fluctuations
Chapter 13 AS-AD and the Business Cycle
Chapter 14 Aggregate Expenditure
Chapter 15 The Short-Run Policy Tradeoff

Part 6 Macroeconomic Policy
Chapter 16 Fiscal Policy
Chapter 17 Monetary Policy

Part 7 The Global Economy
Chapter 18 International Finance
Chapter 19 Global Markets in Action

Robin Bade was an undergraduate at the University of Queensland, Australia, where she earned degrees in mathematics and economics. After a spell teaching high school math and physics, she enrolled in the PhD program at the Australian National University, from which she graduated in 1970. She has held faculty appointments at the University of Edinburgh in Scotland, at Bond University in Australia, and at the Universities of Manitoba, Toronto, and Western Ontario in Canada. Her research on international capital flows appeared in the International Economic Review and the Economic Record.

Robin first taught the principles of economics course in 1970 and has taught it (alongside intermediate macroeconomics and international trade and finance) most years since then. She developed many of the ideas found in this text while conducting tutorials with her students at the University of Western Ontario.

Michael Parkin studied economics in England and began his university teaching career immediately after graduating with a BA from the University of Leicester. He learned the subject on the job at the University of Essex, England’s most exciting new university of the 9160s, and at the age of 30 became one of the youngest full professors. He is a past president of the Canadian Economics Association and has served on the editorial boards of the American Economic Review and the Journal of Monetary Economics. His research on macroeconomics, monetary economics, and international economics has resulted in more than 160 publications in journals and edited volumes, including the American Economic Review, the Journal of Political Economy, the Review of Economic Studies, the Journal of Monetary Economics, and the Journal of Money, Credit, and Banking. He is the author of the best-selling Addison-Wesley textbook, Economics.

Robin and Michael are a wife-and-husband duo. Their most notable joint research created the Bade-Parkin Index of central bank independence and spawned a vast amount of research on that topic. They don’t claim credit for the independence of the new European Central Bank, but its constitution and the movement toward greater independence of central banks around the world were aided by their pioneering work. They are dedicated to the challenge of explaining economics ever more clearly to an ever-growing body of students.

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