Includes index.

Basics, supply and demand - major problems; policy options; the Keynesian approach; policy options - monetary approaches, supply-side approaches; current policies; microeconomics - product markets - basic theory; product markets - issues, factor markets - basic theory; factor markets - issues international economics and comparative systems.

This text develops concepts in the context of real world policies and industries in both Washington and the world economy. Its writing style and closely integrated text and graphs help students to understand and remember the essential theories and concepts. New to this edition are a new chapter, The Collapse of Communism, reflecting changes in the world economy and a chapter on financial markers emphasizing the growing importance of the financial sector to the overall economy.