New to This Edition

Interactive “Work It Out” Tutorials in LaunchPad—for more problem-solving help

The Problems and Applications section in most core chapters includes a link out from a specific problem to a new online tutorial showing how to solve similar problems with economic analysis. Tutorials include interactive assistance for each step, with choice-specific feedback and video explanations provide students

New Case Studies, including:

The New, Improved GDP of 2013 (Chapter 2 The Data of Macroeconomics) discusses the recent change in how the national income accounts treat intellectual properties and research and development;

The Decline in Labor-Force Participation: 2007 to 2014 (Chapter 7: Unemployment and the Labor Market)

Inversions and Corporate Tax Reform (Chapter 17: The Theory of Investment) covers the policy debates that arose from U.S. policymakers' concern about U.S. companies merging with foreign companies to avoid higher U.S. corporate taxes.

Focus on Empirical Research

Three new Case Studies highlight the real-world relevance of recent empirical research studies:

Bloom and Van Reenen’s research on management practices as a source of productivity differences in Chapter 9 (Economic Growth II: Technology, Empirics, and Policy).

Nakamura and Steinsson's research on using regional data to estimate fiscal policy multipliers is discussed in Chapter 11 (Aggregate Demand I: Building the IS- LM Model).

Baker, Bloom, and Davis's research on the effect of policy uncertainty on the economy is presented in Chapter 18 (Alternative Perspectives on Stabilization Policy).

New FYI boxes

Bitcoin: The Strange Case of a Virtual Money (Chapter 4 The Monetary System: What It Is and How It Works)

Economic Possibilities for Our Grandchildren (Chapter 9 Economic Growth II: Technology, Empirics, and Policy)

New and expanded coverage of key topics, including:

Income inequality

In Chapter 3 (National Income: Where It Comes from and Where It Goes) a new section looks at possible explanations for " The Growing Gap Between Rich and Poor."

Macroprudential regulation

In Chapter 20 (The Financial System: Opportunities and Dangers) a new section on "Taking a Macro View of Regulation" looks at how policymakers have increasingly taken the view that the regulation of financial institutions requires more of a macroeconomic perspective in order to reduce the risk of system-wide distress and protect the overall economy against declines in production and employment.

Updated Tables and Figures throughout the book, to include the latest available data.

Thoroughly revised Test Bank provides a wide range of questions to assess student comprehension and their skills at interpreting, analyzing, and synthesizing data. The Test Bank now includes over 2,500 multiple-choice questions, numerical problems, and short-answer graphical questions many of which ask students to work with and interpret graphs.

