MACROECONOMICS, 6TH CANADIAN EDITION HARDCOVER
In revising this edition, the authors have paid particular attention to both the views of our users and reviewers. In large part, this meant reinforcing how economists think about the real world and how they use different models for the various time frames; the very Long Run, the Long Run and the Short Run. Chapter One opens with a simple model of the labour market and then introduces how prices (wages) move to clear markets. This leads to a discussion of flexible and sticky prices, which are then tied to a brief analysis of long run and short run issues in which the notions of price stickiness and flexibility are handled through the slope of the AS curve. The organization of the book follows the time frames outlined in Chapter One, Part 2 discusses the Classical long-run market clearing model and growth theory. Part 3 discusses the AD-AS model and Part 4 discusses the economy in the short run, with emphasis on the IS/LM model. This edition has revised treatment of the open economy and of exchange rates.