The Economy Today

The Economy Today

13th Edition | See Newer Edition

By Bradley Schiller and Cynthia Hill and Sherri Wall

  • Copyright: 2013

  • Publication Date: Jan 06 2012

  • ISBN 10: 0073523216

  • ISBN 13: 9780073523217



Clear. Current. Connected to Today's Student. Schiller, The Economy Today, 13e, is noted for three great strengths: readability, policy orientation, and pedagogy. The accessi

Clear. Current. Connected to Today's Student. Schiller, The Economy Today, 13e, is noted for three great strengths: readability, policy orientation, and pedagogy. The accessible writing style engages students and brings some of the excitement of domestic and global economic news into the classroom. Schiller emphasises how policymakers must choose between government intervention and market reliance to resolve the core issues of what, how, and for whom to produce. This strategic choice is highlighted throughout the full range of micro, macro, and international issues, and every chapter ends with a policy issue that emphasises the markets vs. government dilemma. The authors teach economics in a relevant context, filling chapters with the real facts and applications of economic life. Schiller is also the only principles text that presents all macro theory in the single consistent context of the AS/AD framework.

Connect is the only integrated learning system that empowers students by continuously adapting to deliver precisely what they need, when they need it, and how they need it, so that your class time is more engaging and effective.

  • Language: English

  • Imprint: Irwin/McGraw-Hill

  • Dimension: 8.8 x 11.2

  • Page Count: 912

New Features

  • LearnSmart Advantage is an innovative suite of adaptive learning products fueled by intelligent and proven learning technology. Products in Schiller's LearnSmart Advantage Suite leverage learning science and research, use data-driven recommendations, adapt based on user experiences, and provide detailed reports for students and instructors. Products include:
    • LearnSmart: LearnSmart uses revolutionary adaptive technology to build an optimal learning path for each student. LearnSmart adapts and adjusts content based on a student’s unique strengths, weaknesses, and confidence level, ensuring that every minute spent studying is the most efficient and productive study time possible.
    • SmartBook: Powered by the intelligent and adaptive LearnSmart engine, SmartBook facilitates the reading process by identifying what content a student knows and doesn’t know. As a student reads, the material continuously adapts to ensure the student is focused on the content he or she needs the most to close specific knowledge gaps.
  • New Elasticity Chapter. Chapters 19 and 20 have been split into two chapters to create Chapter 19: Consumer Choice (re-titled) and Chapter 20: Elasticity.
  • Current Coverage. Up-to-date with coverage of the Great Recession, credit crisis, stimulus policies, etc., and current In the News and World View articles updated throughout.
  • Chapter 11 Fiscal Policy. Significantly revised to reflect current economic developments including new (Feb. 2011) CBO estimates of fiscal stimulus impacts and a new World View about U.K. inflation/stimulus trade-off.
  • Chapter 15 Monetary Policy. Thoroughly updated to be in step with recent economic climate including use of the “Bernanke Rule” to illustrate equivalences of fiscal and monetary policy, increased discussion of constraints on effectiveness of 2008-2011 monetary stimulus, In the News features about Fed's 2009-2011 massive bond purchases and banks' reluctance to lend in 2010-2011, and a new World View on China's 2010-2011 monetary restraint.
  • Revised Learning Objectives. Revised/expanded for each chapter, Chapter-Level Learning Objectives make goals clearer for instructors and students while streamlining outcome assessment capabilities. Core learning objectives are included on the first page of each chapter. After reading a given chapter, students should have mastered these core concepts. Questions in the Test Bank are tagged according to these learning objectives, as are other ancillary materials such as the Instructor's Resource Manual and Connect for Economics.
  • YouTube Videos. Cynthia Hill and Sherri Wall have identified YouTube videos that illustrate basic economic concepts. They have provided explanations and questions about each video and how it ties to the economic principles covered. . Assignable in Connect, these real-world videos and accompanying questions help students connect economics to real life events.
  • Study Econ Mobile App. Students can study economics anywhere with McGraw-Hill's new Study Econ mobile study app. The Study Econ mobile app includes book-specific study tools to help students review and master important economic concepts on the go. The app is available in both Apple and Android app markets.

    Features of the Study Econ mobile app include:

  • Flashcards of every key term and definition from the textbook, customizable by chapter.
  • Basic math review for those pesky formulas we sometimes forget.
  • Customizable self-quizzes that allow for more practice and feedback.
  • Common mistakes and pitfalls are included to help master key concepts.
  • Various games which help make learning key terms and concepts more engaging and fun!
  • Clicker and Experiment Content. Bring your course to life with this additional material available on Online Learning Center.
  • Updated Examples and Applications Throughout: Updated to stay relevant in today's world, The Economy Today, 13e adds to its already robust foundation of real-world application with new examples that will capture students' attention, including: AT&T's price cuts on the iPhone 3GS, BP's oil spill and its effects on shrimp prices, record-setting unemployment statistics, Obama-nomics, the 2011 deficit/debt debate, NBER's dating of Great Recession, new competition in tablet market, Ticketmaster's 2011 “dynamic pricing” strategy and AT&T's proposed purchase of T-mobile.

Key Features

  • Market vs. Government: While the debate about markets vs. government has always been a central theme of The Economy Today, the recent economic crisis has brought a resurgence of attention to the basic choice between market reliance and government intervention. In the very first chapter, the concepts of both market failure and government failure are introduced and discussed, and in every subsequent chapter the debate is continued. “The Economy Tomorrow” feature at the end of every chapter challenges students to apply the markets vs. government options to specific policy issues. There is no right or wrong answers. The goal of The Economy Today is instead to expose students to the central debates in economic theory and policy – and challenge them to think about these debates analytically.
  • Policy Emphasis. Schiller motivates students with real-world policy issues to help them become economically literate. The Economy Today contains more real-world applications than most Principles texts, and uses economic policy to show the student the reality and relevance of economics. The articles and applications are chosen from related publications, such as The Wall Street Journal, USA Today and BusinessWeek, to help students tie concepts to situations in their everyday life. Every chapter starts and ends with policy issues. Again, the authors present issues in a balanced and unbiased manner, exposing both the potential and pitfalls of any policy decisions.
  • Clear, Approachable Theory. In addition to an abundance of real-world applications, clear, approachable theory is at heart of a Principles text. Good theory and interesting applications help professors teach economics, not just increase awareness of policy issues. To that end, The Economy Today provides a logically organized and uncluttered theoretical structure for macro, micro, and international theory in a lively, student-friendly manner. This is a book students actually READ!
  • Focus on the core questions of economics: WHAT, HOW, and FOR WHOM. (WHAT goods and services does the United States produce? HOW is that output produced? FOR WHOM is the output produced?) The author asks “Who best answers these questions—the market or the government?” To intervene or not is then the central policy question raised in Chapter 1 and revisited in every chapter. This theme underscores the policy emphasis of the text.
  • One-Model Macro: Schiller is the only text on the market that presents the full range of macro theories in the AS/AD framework. His unique depiction of Keynesian theory - including the multiplier - in the AS/AD framework eliminates the need to teach both the Keynesian Cross (which ends in an inflation dead-end) and the AS/AD framework. This unique, single-model approach streamlines and simplifies the macro course, with no loss of macro theory. No other text does this, making this the most distinctive feature of Schiller's macro. Instructors who have tried it, love it.
  • Treatment of Aggregate Demand/Keynesian Cross: Schiller examines Keynesian theory entirely within the AS/AD framework by moving the Keynesian Cross to an appendix. This appendix includes a model of the Aggregate Expenditure Curve. This allows instructors to streamline and simplify the macro discussion without any loss of theoretical rigor or coverage. This way, instructors who teach the Keynesian cross can examine it in a separate discussion, and instructors who do not can easily skip over it without any interruption in the text progression.
  • Concept Reinforcement: Schiller not only interests students but also teaches them carefully by using extensive pedagogical aids.
    • Self Explanatory Graphs and Tables: Graphs are completely labeled, colorful, and positioned on background grids. Every table is annotated, leaving students with clear explanations.
    • Reinforced Key Concepts: Key terms are defined in the margin when they first appear and are redefined as necessary in subsequent chapters.
    • Photos and Cartoons: The text presentation is enlivened with occasional photos and cartoons that reflect basic concepts.
    • Student Problem Set: The Student Problem Sets include built-in numerical and graphing problems that build on the tables, graphs, and boxed material in each chapter.
  • Competitive Dynamics: Schiller puts great emphasis on the power of competitive markets to raise incomes, improve products, and advance technology. It is the only text with two chapters on competition. The first presents the traditional theory of the competitive firm; the second focuses on the dynamic processes of competitive markets. This unique presentation gives students a real sense of why competition is such a central concern in micro.
  • Global Coverage: The text examines how the United States, as well as every nation in the world, is part of a global or “open” economy. Chapter 2 offers a unique global comparison on economic performance.
  • Chapter on Global Poverty: Brad Schiller is a leading authority in Global Poverty and brings it to the principles course with this complete chapter. An array of global data, theory and policy combine to make an engaging and eye-opening study of this world-wide issue. While it is placed at the end of the book, it can be used at any point during the course and serves as a great launching pad to engage students on application of key economics issues.
  • Assurance of Learning Ready: Many educational institutions today are focused on the notion of assurance of learning, an important element of some accreditation standards. The Economy Today,13e is designed specifically to support your assurance of learning initiatives with a simple, yet powerful, solution. Each test bank question for The Economy Today, 13e maps to a specific chapter learning outcome/objective listed in the text. You can use our test bank software, EZ Test Online, or Connect® Economics to easily query for learning outcomes/objectives that directly relate to the learning objectives for your course.You can then use the reporting features of EZ Test to aggregate student results in similar fashion, making the collection and presentation of assurance of learning data simple and easy.
  • Schiller News Flashes: As up-to-date as The Economy Today is, it can’t foretell the future. As the future unfolds, however, author Brad Schiller writes 2-page “News Flashes” describing major current economic events and relating them to text concepts. “News Flashes” are sent to adopters 4-6 times/year, and are a great source for lecture material, and can be copied for student use.









Part 1 The Economic Challenge

Chapter 1 Economics: The Core Issues

Appendix: Using Graphs

Chapter 2 The U.S. Economy: A Global View

Chapter 3 Supply and Demand

Chapter 4 T

Table of Contents


Part 1 The Economic Challenge

Chapter 1 Economics: The Core Issues

Appendix: Using Graphs

Chapter 2 The U.S. Economy: A Global View

Chapter 3 Supply and Demand

Chapter 4 The Role of Government

Part 2 Measuring Macro Outcomes

Chapter 5 National Income Accounting

Chapter 6 Unemployment

Chapter 7 Inflation

Part 3 Cyclical Instability

Chapter 8 The Business Cycle

Chapter 9 Aggregate Demand

Appendix: The Keynesian Cross

Chapter 10 Self-Adjustment or Instability?

Part 4 Fiscal Policy Tools

Chapter 11 Fiscal Policy

Chapter 12 Deficits and Debt

Part 5 Monetary Policy Options

Chapter 13 Money and Banks

Chapter 14 The Federal Reserve System

Chapter 15 Monetary Policy

Part 6 Supply-Side Options

Chapter 16 Supply-Side Policy: Short-run Options

Chapter 17 Growth and Productivity: Long-run Possibilities

Part 7 Policy Constraints

Chapter 18 Theory versus Reality

Part 8 Product Markets: The Basics

Chapter 19 Consumer Choice

Appendix: Indifference Curves

Chapter 20 Elasticity

Chapter 21 The Costs of Production

Part 9 Market Structure

Chapter 22 The Competitive Firm

Chapter 23 Competitive Markets

Chapter 24 Monopoly

Chapter 25 Oligopoly

Chapter 26 Monopolistic Competition

Part 10 Regulatory Issues

Chapter 27 Natural Monopolies: (De)Regulation?

Chapter 28 Environmental Protection

Chapter 29 The Farm Problem

Part 11 Factor Markets: Basic Theory

Chapter 30 The Labor Market

Chapter 31 Labor Unions

Chapter 32 Financial Markets

Part 12 Distributional Issues

Chapter 33 Taxes: Equity versus Efficiency

Chapter 34 Transfer Payments: Welfare and Social Security

Part 13 International Economics

Chapter 35 International Trade

Chapter 36 International Finance

Chapter 37 Global Poverty



Reference Tables



About the Authors

Bradley Schiller

Cynthia Hill

Sherri Wall