Macroeconomics. individual choice and its consequences

This work is a contemporary yet considerable departure from mainstream introductory economics texts. Rather than simply tacking on recent theoretical developments to a macroeconomic framework developed in the 1960s, the authors have built the macroeconomic model from microeconomic foundations. This approach enables the student to learn and understand important policy issues very early in the text. The result is a macroeconomic model firmly grounded on individual economic choice. The book begins with the concept of budget constraint to show how markets are interrelated and to motivate the discussion of national income accounting. From there, it develops the theory of aggregate demand from the theories of consumption and investment behavior. The theory of aggregate supply is based on the microeconomics of the labor market. Key features of this edition include: individual choice approach; macroeconomic model built on microeconomic foundation; international topics discussed throughout; comprehensive treatment of fiscal policy; and a chapter on the credit market; business cycle and monetary theory chapters actually confront alternative theories with empirical research; applied economic theories to real-world events; focuses on the process of change; shows how all areas of economics are related. A complete instructor's package is available, including the instructor's manual which includes the test bank, transparency masters and a set of comprehensive lecture outlines - a computer test bank for adopters. A study guide by Lon Carlson is available for the students.