Dimensions
218 x 276 x 15mm
For courses in the principles of macroeconomics. Throughout Macroeconomics, 3rd Edition, authors Daron Acemoglu, David Laibson, and John List use real economic questions and data to help students learn about the world around them. Taking a fresh approach, they use the themes of optimisation, equilibrium, and empiricism to not only illustrate the power of simple economic ideas, but also to explain and predict what's happening in today's society. Each chapter begins with an empirical question that is relevant to the life of a student and is later answered using data in the Evidence-Based Economics feature. As a result of the text's practical emphasis, students learn to apply economic principles to guide the decisions they make in their own daily lives.
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FeaturesThree unified principles lay the groundwork for understanding the economic way of thinking about the world
Optimisation. Economists believe that optimisation explains most choices people make. When people fail to choose the best available option, economic reasoning can be used to analyse the mistake and to suggest a better course of action.
Equilibrium. Economic systems tend toward equilibrium, where in each economic actor feels that he or she cannot do any better by picking another course of action. This principle highlights the connections among economic actors and their choices.
Empiricism. Economists use data to test economic theories, learn about the world, and speak to policymakers. The emphasis on matching theories with real-world data to answer specific questions helps to show students the evidence behind the theory, making economics concrete, interesting, and fun.
New to this edition
End-of-chapter Evidence-Based Economic problems show how economists use data to answer the question posed in the opening paragraph of each chapter. These features let students get a real look at economics as it plays out in the world around them and gives them the skills to question systematically and evaluate what they read. New problems focus on:
the opportunity cost of social media, higher education, and going to a movie (Chapter 1)
whether economic development is tied to climate (Chapter 8)
the 2007-2009 recession and applying Okun's law to the 2020 recession (Chapter 12)
spending multipliers and the CARES act (Chapter 13)
Evidence-Based Economics sections devote more discussion to real-world economic issues and events, such as wages and employment during the COVID-19 Pandemic (Chapter 9) and the causes of recessions (Chapter 12).
Letting the Data Speak boxes are short, targeted explorations that analyse an economic question by using real data as the foundation of the discussion. Recent additions profile:
how the price of crude oil temporarily fell below $0 per barrel (Chapter 4)
racial discrimination in the labor market (Chapter 9)
the latest research on inflation expectations and past experiences (Chapter 11)
Choice and Consequence exercises emphasise optimisation by focusing on making the best decision. These features ask students to make an economic decision or evaluate the consequences of past real decisions. The authors then explain how an economist might analyse the same decision. New questions explore the future implications of AI on employment (Chapter 9) and recent changes in US trade policy and Brexit (Chapter 14).
Practical coverage of macroeconomics helps students see how they can apply course content in their own decision-making. New and relevant discussions related to the COVID-19 pandemic include:
its impact on positive and normative economics related to unemployment and the stock market (Chapter 1)
the trade-offs between health and economic output during the crisis (Chapter 1)
how stay-at-home orders in 2020 impacted the demand for gasoline in developed countries (Chapter 4)
the macroeconomic indicators related to, and savings rate and bank failures during, the COVID-19 Recession (Chapters 5 and 10)
the government expenditure multiplier during the 2007-2009 and 2020 recessions (Chapter 13)
