The new edition of the worlds most

popular macroeconomic textbook

I N T E R N A T I O N A L E D I T I O N

macroeconomics
N. Gregory Mankiw

'An excellent book that I will use in my 2nd year Principles course
later in the year...A wonderful achievement.'
Dr A. Piggins, Queens University of Belfast

'A clear, user-friendly presentation of modern macroeconomic

analysis...the international coverage makes it suitable for a
European, as well as a US audience.'
Dr Martin Tait, University of Newcastle

'Excellent clear exposition. Good coverage of range of material.

The market leader. Excellent aids for lecturers.'
Dr. S W Proce, Department of Economics, University of Leicester

WORTH
 macroeconomics fifth edition
N. Gregory Mankiw
Published June 2002 608 Pages 260mm x 210mm
Hardback £34.99 0-716-75479-7

new in the fifth edition about the author

New Organization. The chapters on economic growth are now N. Gregory Mankiw is Professor of Economics at
separated in their own part, both to highlight the importance of Harvard University. After earning a Ph.D. in
this topic and to prevent this material from complicating the economics from MIT, he began teaching at
development of the classical model. The new organization first Harvard in 1985 and was promoted to full
presents the classical theory of income, prices, trade and professor in 1987. Today, he regularly
unemployment. The classical model is the starting point for the teaches both undergraduate and
growth theory and business cycle theory that follow. graduate courses in macroeconomics.

Professor Mankiw is a prolific writer and a regular participant in

Updated Coverage. The new edition incorporates
academic and policy debates. His research ranges across many
coverage of a number of recent events, including:
fields within economics and includes work on price adjustment,
■ The introduction of the Euro
consumer behaviour, financial markets, monetary and fiscal policy,
■ The continuing recession in Japan
and economic growth. In addition to his duties at Harvard, he is a
■ The collapse of the dot.coms
research associate of the National Bureau of Economic Research,
■ The economic impact of the World Trade Centre disaster
a member of the Brookings Panel on Economic Activity, and an
■ The end of the longest “boom”
adviser to the Federal Reserve Bank of Boston and the
■ The 2001 Bush tax cut
Congressional Budget Office.
■ The temporary U.S. budget surplus

New and Revised Case Studies, including: contents

■ The Secrets to Happiness [showing how people’s reported life Part 1 Introduction: The Science of Macroeconomics - The Data of
satisfaction is tied to inflation and unemployment] Macroeconomics

■ Information Technology and the New Economy Part 2 Classical Theory: The Economy in the Long Run: National
Income: Where It Comes From and Where It Goes - Money and Inflation -
■ Cutting Taxes to Stimulate the Economy The Open Economy - Unemployment
■ The Remarkable Stability of the 1990s
Part 3 Growth Theory: The Economy in the Very Long Run:
■ The Fiscal Future: Good News and Bad News Economic Growth I - Economic Growth II
■ Case Study on Credit Crunches Part 4 Business Cycle Theory: The Economy in the Short Run:
Introduction to Economic Fluctuations - Aggregate Demand I - Aggregate
New and Revised FYI Boxes, including: Demand II - Aggregate Demand in the Open Economy -
Aggregate Supply
■ International Flows of Goods and Capital: An Example
Part 5 Macroeconomic Policy Debates: Stabilization Policy
■ The Liquidity Trap
Government Debt and Budget Deficits
■ How Precise Are Estimates of the Natural
Part 6 More on the Microeconomics Behind Macroeconomics:
Rate of Unemployment? Consumption - Investment - Money Supply and Money Demand -
Advances in Business Cycle Theory
New Internet-based problems, within the end-of-chapter Epilogue: What We Know, What We Don't
problem sets which require students to do online research Glossary

Comments on the Fourth Edition

‘Excellent. Great textbook. Concise, direct. Concepts exposed in coherent and easy understanding sequence, a work from someone who knows how the
undergraduate thinks. Good examples help comprehension of theory and links it to real world.' Amazon Customer Comment

'...still my favourite text.' Professor Landmann, Albert-Ludwig University, Freiberg

" Reserve your free lecturers’ inspection copies today*

*See order form for details

For more information on this title please visit

" www.palgrave.com/economics/mankiw

supplements
FOR STUDENTS
Student Guide and Workbook, Roger Kaufman, Smith College,
£19.99 0-7167-5397-9
This guide offers various ways for students to learn the material in the new edition and
assess their understanding:
■ Fill-In Questions give students the opportunity to review and check their
knowledge of the key terms and concepts in the chapter.
■ Multiple-Choice Questions allow students to test themselves on
the chapter material.
■ Exercises guide students step by step through the various models using graphs
and numerical examples.
■ Problems ask students to apply the models on their own.
■ Questions to Think About require critical thinking as well as economic analysis.
■ Data Questions ask students to obtain and learn about readily
available economic data.
FOR INSTRUCTORS
Instructor’s Resource Manual, Robert G. Murphy, Boston College, 0-7167-5398-7
For each chapter of this book, the revised manual contains notes to the instructor, a
detailed lecture outline, additional case studies, and coverage of advanced topics.
Instructors can use the manual to prepare their lectures, and they can reproduce
whatever pages they choose as handouts for students.
Solutions Manual, John Fernald, Federal Reserve Board, 0-7167-5399-5
The manual also contains answers for all of the “Questions for Review” and “Problems
and Applications” in text, all of the MacroBytes exercises, and selected questions from
the Student Guide and Workbook.
WEB SITE at www.palgrave.com/economics/mankiw featuring:
MacroBytes, David Weil, Brown University and Murat Iyigun, University of Colorado
David Weill and Murat Iyigun have updated this innovative software package for
students, which is now available over the internet. MacroBytes provides a range of
activities to aid and motivate the student throughout the course.
Self-Tests. Students can test their knowledge of the material in the book by taking
multiple-choice tests on any chapter or combination of chapters. After the student
responds, the program explains the answer and directs the student to specific
sections in the book for additional study.
Data Plotter. Students can explore macroeconomic data with time-series graphs and
scatterplots.
the mankiw approach
■
1 Case Studies Economics comes to life when applied to
actual events. The numerous case studies in this book [many
new or revised] occur frequently so students don’t have to
grapple with an overdose of theory before seeing the theory
applied.
■
2 FYI Boxes [many new or revised for this edition] clarify
difficult concepts, provide additional information about the
tools of economics, and show how economics relates to our
daily lives.
■
3 Graphs Understanding graphical analysis is a key to
learning macroeconomics. The graphs in the Fifth Edition
are easy to follow and often include comment boxes on
important points.
Mathematical Notes make an argument more rigorous
or present a proof of a mathematical result. They give
instructors flexibility by moving the more difficult
mathematical coverage out of the main body of the text.
Chapter Summaries, brief and gives students an
opportunity to see material in perspective and prepare
for exams.
Key Concepts are highlighted in boldface when introduced
and listed for review at the end of the chapter.
■
4 Questions for Review let students test their understanding
of the chapter’s basic lessons.
■
5 Problems and Applications Some of these problems are
numerical applications of the theory. Others encourage the
student to go beyond this material in the chapter by
addressing new issues that are closely related to the chapter
■
6 topics. Specific new problems require students to do online
research.
Chapter Appendixes Several chapters include appendixes
that offer additional material, sometimes at a higher level of
mathematical sophistication. These are designed so that
professors can cover certain topics in greater depth if they
wish. The appendixes can be skipped altogether without loss
of continuity.
Glossary of more that 250 terms helps students become
familiar with the language of macroeconomics.
Macro Models. These modules provide simulations of the models presented in the
book. Students can change the exogenous variables and see the outcomes in terms
of shifting curves and recalculated numerical values of the endogenous variables.
Each module contains exercises that instructors can assign as homework.
2009: A Game for Macroeconomists. The game allows students to become
President of the United States in the year 2009 and to make macroeconomic policy
decisions based on news events, economic statistics, and approval ratings. It gives
students a sense of the complex interconnections that influence the economy. It is
also fun to play.
Student PowerPoint® Tutorials, Mannig Simidian, Harvard University
A dynamic new learning tool, Mannig Simidian’s original animated PowerPoint tutorials
help students learn basic concepts and models in a practical, yet lively way.
PRESENTATION
PowerPoint® Slides, Ron Cronovich, University of Nevada at Las Vegas
These completely new PowerPoint presentations for each chapter feature graphs with
effective animation, careful explanations of the core material, additional case studies
and data, helpful notes to the instructor, and innovative pedagogical features.
Designed to be customized or used as is, they include easy instructions for professors
who have little to no experience with PowerPoint.
ASSESSMENT
Test Bank, Nancy Jianakoplos, Colorado State University, 0-7167-5400-2
The test bank now includes over 1000 multiple-choice questions, including several
short numerical problems are also provided for each chapter.
Test Bank CD-ROM [Windows and Mac versions on one disc], 0-7167-5402-9
The easy-to-use CD version includes Windows and Mac versions on a single disc, in a
format that lets you to add, edit, and resequence questions. The CD is also the
access point for Diploma Online Testing.
Diploma Online Testing, from the Brownstone Research Group
With Diploma, instructors can easily create and administer secure exams over a
network and over the Internet, with questions that incorporate multimedia and
interactive exercises. The program lets you restrict tests to specific computers or time
blocks, and includes an impressive suite of gradebook and result-analysis features.
Online Quizzing, powered by Questionmark
Now instructors can easily and securely quiz students online using prewritten,
multiple-choice questions for each text chapter [not from the test bank]. Students
receive instant feedback and can take the quizzes multiple times. Instructors can go
into a protected web site to view results by quiz, student, or question, or can get
weekly results via email.
 the acclaimed mankiw pedigree

macro
To provide an accurate portrait of the state of contemporary macroeconomics, each
new edition of Mankiw’s textbook incorporates the most recent developments in
theory and applications – while adhering to the objectives that have defined the
book since the first edition by:

■ Balancing coverage of short-run and long-run issues, to give students a richer macroeconomics fifth edition
introduction to public policy

■ Integrating Keynesian and classical ideas to familiarize students with

the importance of each approach

■ Using a variety of simple models to clarify complex concepts, because no one

model can shed light on all facets of the field N. Gregory Mankiw
■ Incorporating real-world data and events to show students
the relevance of the material

✁
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WORTH
the acclaimed mankiw pedigree

macro
To provide an accurate portrait of the state of contemporary macroeconomics, each
new edition of Mankiw’s textbook incorporates the most recent developments in
theory and applications – while adhering to the objectives that have defined the
book since the first edition by:

■ Balancing coverage of short-run and long-run issues, to give students a richer macroeconomics fifth edition
introduction to public policy

■ Integrating Keynesian and classical ideas to familiarize students with

the importance of each approach

■ Using a variety of simple models to clarify complex concepts, because no one

model can shed light on all facets of the field N. Gregory Mankiw
■ Incorporating real-world data and events to show students
the relevance of the material