This new edition incorporates contemporary topics such as the effects of the US sub-prime market, increased trading with China and India, the RBA, interest rates and monetary policy. Comprehensively revised and updated, the text enables students to understand the important foundations of economic analysis in a practical real-world context.

Part 1: Introduction 1. Ten lessons from economics 2. Thinking like an economist 3. Interdependence and the gains from trade Part 2: Supply and demand I: How markets work 4. The market forces of supply and demand 5. Elasticity and its application 6. Supply, demand and government policies Part 3: The data of macroeconomics Chapter 7 Measuring a nation's income Chapter 8 Measuring the cost of living Part 4: The real economy in the long run 9. Production and growth 10. Saving, investment and the financial system 11. The natural rate of unemployment Part 5: Money and prices in the long run 12. The monetary system 13. Inflation: Its causes and costs Part 6: The macroeconomics of open economies 14. Open-economy macroeconomics: Basic concepts 15. A macroeconomic theory of the open economy Part 7: Short-run economic fluctuations 16. Aggregate demand and aggregate supply 17. The influence of monetary and fiscal policy on aggregate demand 18. The short-run trade-off between inflation and unemployment Part 8: Final thoughts 19. Five debates over macroeconomic policy

Robin Stonecash has recently retired from her position as Executive Dean of the Faculty of Business Law and Arts at Southern Cross University. She was previously Director of Executive Education and the Global EMBA at the University of Sydney�s Business School and Director of Executive Education at the Business School at the University of Technology, Sydney, as well as Director of Stonecash Associates, a boutique consulting firm. She studied economics at Swarthmore College, the University of Wisconsin and the University of New South Wales. She currently consults on strategy and negotiation as well as teaching economics, strategy and negotiation to business owners. Professor Stonecash�s research interests currently focus on agribusiness in Australia and New Zealand and the impact of sustainability in the agricultural sector. N. Gregory Mankiw is the Robert M. Beren Professor of Economics at Harvard University. As a student, he studied economics at Princeton University and the Massachusetts Institute of Technology. As a teacher he has taught macroeconomics, microeconomics, statistics and principles of economics. Professor Mankiw is a prolific writer and a regular participant in academic and policy debates. In addition to his teaching, research and writing, Professor Mankiw has been a research associate of the National Bureau of Economic Research and an advisor to the Federal Reserve Banks of Boston and New York and the Congressional Budget Office. From 2003 to 2005, he served as chairman of the US President�s Council of Economic Advisors and was an advisor to presidential candidate Mitt Romney during the 2012 US presidential election. Joshua Gans holds the Skoll Chair in Innovation and Entrepreneurship at the Rotman School of Management, University of Toronto; he was previously Professor of Management (information Economics) at the Melbourne Business School. He studied economics at the University of Queensland and Stanford University. He currently teaches network and digital marketing strategy, but prior to his relocation to Canada he taught introductory economics and incentive theory to MBA students. Joshua Gans holds the Skoll Chair in Innovation and Entrepreneurship at the Rotman School of Management, University of Toronto; he was previously Professor of Management (information Economics) at the Melbourne Business School. He studied economics at the University of Queensland and Stanford University. He currently teaches network and digital marketing strategy, but prior to his relocation to Canada he taught introductory economics and incentive theory to MBA students. Stephen King is a Commissioner with Australia�s Productivity Commission and a Professor of Economics at Monash University. He has previously been Dean of Business and Economics at Monash University, a member of the Economic Regulation Authority of Western Australia, a member of the National Competition Council and a Commissioner at the Australian Competition and Consumer Commission. Stephen has taught a variety of courses, including introductory economics for 11 years at Harvard University, Monash University and the University of Melbourne. Professor King has researched and published in a wide range of areas, including law and economics, game theory, corporate finance, and industrial economics. Stephen regularly provides advice to government, private firms and the courts on a range of issues relating to regulation and competition policy. He is a Lay Member of the High Court of New Zealand and a Fellow of the Academy of Social Sciences in Australia. Stephen King is a Commissioner with Australia�s Productivity Commission and a Professor of Economics at Monash University. He has previously been Dean of Business and Economics at Monash University, a member of the Economic Regulation Authority of Western Australia, a member of the National Competition Council and a Commissioner at the Australian Competition and Consumer Commission. Stephen has taught a variety of courses, including introductory economics for 11 years at Harvard University, Monash University and the University of Melbourne. Professor King has researched and published in a wide range of areas, including law and economics, game theory, corporate finance, and industrial economics. Stephen regularly provides advice to government, private firms and the courts on a range of issues relating to regulation and competition policy. He is a Lay Member of the High Court of New Zealand and a Fellow of the Academy of Social Sciences in Australia.