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When looking to bridge the gap between global economic events and their own daily lives, Americans have increasingly turned to Paul Krugman. His lucid grasp of economics in action and his uncanny way of translating complex issues into everyday terms have made him a bestselling author and the most widely read economist writing for the general public today.

CHAPTER 1 First Principles
CHAPTER 2 Economic Models: Trade-offs and Trade
CHAPTER 2 APPENDIX Graphs in Economics
CHAPTER 3 Supply and Demand
CHAPTER 4 The Market Strikes Back
CHAPTER 5 International Trade
CHAPTER 5 APPENDIX Consumer and Producer Surplus
CHAPTER 6 Macroeconomics: The Big Picture
CHAPTER 7 Tracking the Macroeconomy
CHAPTER 8 Unemployment and Inflation
CHAPTER 9 Long-Run Economic Growth
CHAPTER 10 Savings, Investment Spending, and the Financial System
CHAPTER 11 Income and Expenditure
CHAPTER 11 Appendix: Deriving the Multiplier Algebraically
CHAPTER 12 Aggregate Demand and Aggregate Supply
CHAPTER 13 Fiscal Policy
CHAPTER 13 Appendix: Taxes and the Multiplier
CHAPTER 14 Money, Banking, and the Federal Reserve System
CHAPTER 15 Monetary Policy
CHAPTER 16 Inflation, Disinflation, and Deflation
CHAPTER 17 Events and Ideas
Chapter 18 Open-economy Macroeconomics

Fully updated and revised, the second edition of this core textbook integrates models with real world examples, so the relevance of the theoretical concept is clear throughout.