Book Summary of Macroeconomics: Theory and Applications The text uses the aggregate supply/aggregate demand model as a fundamental tool for learning macroeconomics. It achieves the right level of rigor and detail, presenting complicated concepts in a relatively straightforward manner and using timely economic data. Key Feature • There is expanded coverage on developing economies (China and India), as well as coverage on outsourcing. • The book provides analysis of human capital's impact on economic growth, including a discussion on minimum wage and household protection. Table of Contents Part I: Getting Acquainted with Economics 1. What Is Economics? 2. The Economy: Myth and Reality. 3. The Fundamental Economic Problem: Scarcity and Choice. 4. Supply and Demand: An Initial Look. Part II: The Macroeconomy: Aggregate Demand and Supply 5. An Introduction to Macroeconomics 6 The Goals of Macroeconomic Policy 7. Economic Growth: Theory and Policy 8. Aggregate Demand and the Powerful Consumer 9. Demand-Side Equilibrium: Unemployment or Inflation? 10. Bringing in the Supply Side: Unemployment and Inflation? Part III: Fiscal and Monetary Policy 11. Managing Aggregate Demand: Fiscal Policy 12. Money and the Banking System 13. Managing Aggregate Demand: Monetary Policy 14. The Debate Over Monetary and Fiscal Policy 15. Budget Deficits in the Short and Long Run 16. The Trade-off between Inflation and Unemployment Part IV: The world economy 17. Exchange Rates and the Macroeconomy 18. International Trade and Comparative Advantage 19. The International Monetary System: Order or Disorder? Index