This book presents an equilibrium approach to macroeconomics. It shows readers how market-clearing models with strong microeconomic foundations can be used to understand real-world phenomena and to evaluate alternative macroeconomic policies. Moreover, a single, unified framework works as well for short-term business fluctuation as for long-term economic growth.

This latest edition includes the most recent theoretical and empirical developments in economic growth, recent evidence on the macroeconomics of labor markets and public finance, and up-to-date results on the interplay between nominal and real variables.

“He has changed the way economists think about everything from the long-run effects of government deficits to the forces that favor economic growth.”

— Sylvia Nasar
New York Times