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In Economics, noted economist and teacher John Taylor unravels sophisticated material by combining clear, straightforward writing with annotated graphs and real-life examples that drive students' interest in modern economic theory.The first to cover long-run fundamentals before short-term economic fluctuations, Taylor's modern approach helps students to understand the basic determinants of growth (labor, capital, and technology) before introducing fluctuations (inflation, output, and employment) that can occur even during periods of steady growth. In addition, he offers a breakthrough discussion of economic fluctuations—modifying the classic AD/AS model to include inflation so that students gain a realistic viewpoint on long-run growth. Chapters 5–7 address the efficiency of competitive markets, setting the stage for later discussion of market failure and government policy. An in-depth description of an experimental double-oral auction in Chapter 7 provides a unique perspective on people's economic interactions with the market.New! Expanded applications and case studies appear throughout the text, providing more opportunities for students to connect the material with the real world.New! New! Updated discussions of the latest economic developments in the U.S. and around the world—including the 2001 recession—illustrate practical, contemporary applications for concepts covered in the text.New! A significantly enhanced support package features extensive study aids for students, including online tutoring through SMARTHINKING and a reduced subscription price to and The Wall Street Journal. In addition, classroom management tools help instructors cut down on the time spent preparing for lectures.Numerous graphs feature Taylor's trademark "conversation boxes" and offer students a step-by-step illustration of the economic models and theories under review.Economics in Action boxes highlight how economic principles shape everyday life, including "Green Pricing and Incentives," and "Digital Cameras and the Future of Film." Likewise, Reading the News boxes help students decipher recent news stories about economic policy, including the impact of 9/11 and the downsizing of the dot-com business sector.

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