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, in our work environment, or at the national or international level. The present text represents a common sense approach to basic macroeconomics. It is directed toward all students, but particularly those within business school settings including students beginning an advanced business degree course of study. It will deliver clear statements of essential economic principles, supported by easy to understand examples, and uncluttered by extraneous material; the goal being to provide a concise readable primer that covers the substance of macroeconomic theory.
The text begins by explaining key economic principles and defining important terms used in macroeconomic discussion. It uses a single unifying tool--aggregate demand and aggregate supply analysis--to probe differing perspectives on macroeconomic policies.