Systematically structured and written in the clear, accessible language that has made Professor Taylor one of the world\'s leading teachers of economics, the constant focus of the second edition of Macroeconomics is on student understanding. Long run economic growth theory and economic fluctuations theory are fully explained and explored, as are the various relationships between macroeconomic variables and their implications for macroeconomic policy. Taylor\'s unique approach to macroeconomics - covering long term growth before short term fluctuations and his model of aggregate demand and supply which accommodates inflation rates - have been adopted by other instructors and authors. The early presentation of the long run perspective sets up the discussion of fluctuations as deviations from the long-run path and Taylor\'s model of AD/AS is now widely accepted as a more accurate depiction of the relationship between changes in the price level and GDP. A companion volume Microeconomics is available. FEATURES The following pedagogical features are designed to help the student learn economics. The boxed examples to give real-life perspectives are \'Economics at work\', which demonstrate the relationship between the theory and everyday practice and highlight the day-to-day operation of economic principles \'Media analysis\', which help students critically analyse recent news, as well as interpret analysis by the media. The media articles are followed by main points and questions to enhance student learning. Full colour has been used to distinguish between curves and to show how the curves shift dynamically over time. Complete captions and small shaded conversation boxes in graphs make many of the figures completely self-contained. In some graphs, sequential numbering of these conversation boxes stresses the dynamic nature of the curves. Margin boxes appear where an additional explanation or reminder will help students more easily grasp a new concept. Photographs and cartoons are used to illustrate abstract ideas. Special care has gone into the search for and selection of photographs to illustrate difficult economic ideas, such as inelastic supply curves and opportunity costs. Most text photographs (many consisting of two or three parts) have a short title and caption to explain their relevance to the text discussion. Key term definitions appear in the margins and the key terms are listed at the end of every chapter. There is also a glossary at the end of the book. Brief reviews at the end of each major section summarise the key points in abbreviated form as the chapter evolves. These reviews are useful for preliminary skim reading as well as for review. Questions for review at the end of every chapter are tests of recall and require only short answers. They can be used for oral review or as a quick self-check. Problems, an essential tool in learning economics, have been carefully selected, revised and tested. An ample supply of problems appear in every chapter. Some problems ask the reader to work out examples that are slightly different from the ones in the text; others require a more critical thinking approach. A second set of problems that parallel those at the end of each chapter is included in the accompanying test bank.