Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
,The Real Economy in the Long Run
12 Production and Growth
13 Saving, Investment, and the Financial System These chapters describe the forces that in the long run determine
key real variables, including GDP growth, saving, investment,
14 The Basic Tools of Finance real interest rates, and unemployment.
15 Unemployment
Money and Prices in the Long Run
16 The Monetary System The monetary system is crucial in determining the long-run
behavior of the price level, the inflation rate, and other
17 Money Growth and Inflation nominal variables.
The Macroeconomics of Open Economies
18 Open-Economy Macroeconomics: A nation’s economic interactions with other nations are described
Basic Concepts by its trade balance, net foreign investment, and exchange rate.
19 A Macroeconomic Theory of the A long-run model of the open economy explains the determinants
Open Economy of the trade balance, the real exchange rate, and other real variables.
Short-Run Economic Fluctuations
20 Aggregate Demand and Aggregate Supply
The model of aggregate demand and aggregate supply explains
21 The Influence of Monetary and Fiscal Policy short-run economic fluctuations, the short-run effects of
on Aggregate Demand monetary and fiscal policy, and the short-run linkage between
22 The Short-Run Trade-off between real and nominal variables.
Inflation and Unemployment
Final Thoughts
A capstone chapter presents both sides of six major debates
23 Six Debates over Macroeconomic Policy
over economic policy.
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
, Principles of Macroeconomics, 8e © ����, ���� Cengage Learning
N. Gregory Mankiw ALL RIGHTS RESERVED. No part of this work covered by the copyright herein
Vice President, General Manager, Social Science may be reproduced or distributed in any form or by any means, except as
& Qualitative Business: Erin Joyner permitted by U.S. copyright law, without the prior written permission of the
copyright owner.
Product Director: Jason Fremder
Senior Product Manager: Michael Parthenakis For product information and technology assistance, contact us at
Developmental Editor: Jane Tufts Cengage Learning Customer & Sales Support, 1-800-354-9706
Senior Digital Content Designer: Kasie Jean For permission to use material from this text or product,
submit all requests online at www.cengage.com/permissions
Senior Content Developer: Anita Verma
Further permissions questions can be emailed to
Content Development Manager: Clara
Goosman
Product Assistant: Emily Lehmann Unless otherwise noted, all items © Cengage Learning.
Executive Marketing Manager: John Carey
Library of Congress Control Number: ����������
Senior Content Project Manager:
Colleen A. Farmer ISBN ��: ���-�-���-�����-�
Senior Digital Production Project Manager: ISBN ��: �-���-�����-�
Derek Drifmeyer
Manufacturing Planner: Kevin Kluck Cengage Learning
Marketing Coordinator: Casey Binder �� Channel Center Street
Boston, MA �����
Senior Learning Design Author: Eugenia Belova
USA
Learning Design Author: Brian A. Rodriguez
Production Service: Lumina
Cengage Learning is a leading provider of customized learning solutions with
Intellectual Property employees residing in nearly �� different countries and sales in more than
Analyst: Jennifer Bowes ��� countries around the world. Find your local representative at
Project Manager: Sarah Shainwald www.cengage.com.
Senior Art Director: Michelle Kunkler
Internal and Cover Designer: Harasymczuk Cengage Learning products are represented in Canada by Nelson Education, Ltd.
Design
Cover Image: Library of Congress Prints and
To learn more about Cengage Learning Solutions, visit www.cengage.com
Photographs Division Washington, DC
20540 USA [LC-USZC4-4637];
© AIMSTOCK/Getty Images; © Buena Vista Purchase any of our products at your local college store or at our preferred
Images/Getty Images online store www.cengagebrain.com
Chapter Opener Photo: © samsonovs/Getty
Images
Custom Internal Illustrations: Bruce Morser
Printed in the United States of America
Print Number: 01 Print Year: 2016
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
, About
the Author
N. Gregory Mankiw is the Robert M. Beren Professor
of Economics at Harvard University. As a student, he
studied economics at Princeton University and MIT.
As a teacher, he has taught macroeconomics, microeco-
nomics, statistics, and principles of economics. He even
spent one summer long ago as a sailing instructor on
Long Beach Island.
Professor Mankiw is a prolific writer and a regular
participant in academic and policy debates. His work
has been published in scholarly journals, such as the
American Economic Review, Journal of Political Econ-
omy, and Quarterly Journal of Economics, and in more
popular forums, such as the New York Times and The
Wall Street Journal. He is also author of the best-selling
Jordi Cabré
intermediate-level textbook Macroeconomics (Worth
Publishers). In addition to his teaching, research, and
writing, Professor Mankiw has been a research asso-
ciate of the National Bureau of Economic Research,
an adviser to the Congressional Budget Office and the
Federal Reserve Banks of Boston and New York, and
a member of the ETS test development committee for
the Advanced Placement exam in economics. From
2003 to 2005, he served as chairman of the President’s
Council of Economic Advisers.
Professor Mankiw lives in Wellesley, Massachusetts,
with his wife, Deborah, three children, Catherine,
Nicholas, and Peter, and their border terrier, Tobin.
vii
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
,The Real Economy in the Long Run
12 Production and Growth
13 Saving, Investment, and the Financial System These chapters describe the forces that in the long run determine
key real variables, including GDP growth, saving, investment,
14 The Basic Tools of Finance real interest rates, and unemployment.
15 Unemployment
Money and Prices in the Long Run
16 The Monetary System The monetary system is crucial in determining the long-run
behavior of the price level, the inflation rate, and other
17 Money Growth and Inflation nominal variables.
The Macroeconomics of Open Economies
18 Open-Economy Macroeconomics: A nation’s economic interactions with other nations are described
Basic Concepts by its trade balance, net foreign investment, and exchange rate.
19 A Macroeconomic Theory of the A long-run model of the open economy explains the determinants
Open Economy of the trade balance, the real exchange rate, and other real variables.
Short-Run Economic Fluctuations
20 Aggregate Demand and Aggregate Supply
The model of aggregate demand and aggregate supply explains
21 The Influence of Monetary and Fiscal Policy short-run economic fluctuations, the short-run effects of
on Aggregate Demand monetary and fiscal policy, and the short-run linkage between
22 The Short-Run Trade-off between real and nominal variables.
Inflation and Unemployment
Final Thoughts
A capstone chapter presents both sides of six major debates
23 Six Debates over Macroeconomic Policy
over economic policy.
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
, Principles of Macroeconomics, 8e © ����, ���� Cengage Learning
N. Gregory Mankiw ALL RIGHTS RESERVED. No part of this work covered by the copyright herein
Vice President, General Manager, Social Science may be reproduced or distributed in any form or by any means, except as
& Qualitative Business: Erin Joyner permitted by U.S. copyright law, without the prior written permission of the
copyright owner.
Product Director: Jason Fremder
Senior Product Manager: Michael Parthenakis For product information and technology assistance, contact us at
Developmental Editor: Jane Tufts Cengage Learning Customer & Sales Support, 1-800-354-9706
Senior Digital Content Designer: Kasie Jean For permission to use material from this text or product,
submit all requests online at www.cengage.com/permissions
Senior Content Developer: Anita Verma
Further permissions questions can be emailed to
Content Development Manager: Clara
Goosman
Product Assistant: Emily Lehmann Unless otherwise noted, all items © Cengage Learning.
Executive Marketing Manager: John Carey
Library of Congress Control Number: ����������
Senior Content Project Manager:
Colleen A. Farmer ISBN ��: ���-�-���-�����-�
Senior Digital Production Project Manager: ISBN ��: �-���-�����-�
Derek Drifmeyer
Manufacturing Planner: Kevin Kluck Cengage Learning
Marketing Coordinator: Casey Binder �� Channel Center Street
Boston, MA �����
Senior Learning Design Author: Eugenia Belova
USA
Learning Design Author: Brian A. Rodriguez
Production Service: Lumina
Cengage Learning is a leading provider of customized learning solutions with
Intellectual Property employees residing in nearly �� different countries and sales in more than
Analyst: Jennifer Bowes ��� countries around the world. Find your local representative at
Project Manager: Sarah Shainwald www.cengage.com.
Senior Art Director: Michelle Kunkler
Internal and Cover Designer: Harasymczuk Cengage Learning products are represented in Canada by Nelson Education, Ltd.
Design
Cover Image: Library of Congress Prints and
To learn more about Cengage Learning Solutions, visit www.cengage.com
Photographs Division Washington, DC
20540 USA [LC-USZC4-4637];
© AIMSTOCK/Getty Images; © Buena Vista Purchase any of our products at your local college store or at our preferred
Images/Getty Images online store www.cengagebrain.com
Chapter Opener Photo: © samsonovs/Getty
Images
Custom Internal Illustrations: Bruce Morser
Printed in the United States of America
Print Number: 01 Print Year: 2016
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
, About
the Author
N. Gregory Mankiw is the Robert M. Beren Professor
of Economics at Harvard University. As a student, he
studied economics at Princeton University and MIT.
As a teacher, he has taught macroeconomics, microeco-
nomics, statistics, and principles of economics. He even
spent one summer long ago as a sailing instructor on
Long Beach Island.
Professor Mankiw is a prolific writer and a regular
participant in academic and policy debates. His work
has been published in scholarly journals, such as the
American Economic Review, Journal of Political Econ-
omy, and Quarterly Journal of Economics, and in more
popular forums, such as the New York Times and The
Wall Street Journal. He is also author of the best-selling
Jordi Cabré
intermediate-level textbook Macroeconomics (Worth
Publishers). In addition to his teaching, research, and
writing, Professor Mankiw has been a research asso-
ciate of the National Bureau of Economic Research,
an adviser to the Congressional Budget Office and the
Federal Reserve Banks of Boston and New York, and
a member of the ETS test development committee for
the Advanced Placement exam in economics. From
2003 to 2005, he served as chairman of the President’s
Council of Economic Advisers.
Professor Mankiw lives in Wellesley, Massachusetts,
with his wife, Deborah, three children, Catherine,
Nicholas, and Peter, and their border terrier, Tobin.
vii
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
