Macroeconomics an introduction.

The book starts by discussing the ten principles and the everyday use of economics. The mechanism of trade and the gains attained from it are then explained through the Philippine experience. Demand and supply are shown to be important in understanding equilibrium, shifts and changes, surpluses, and shortages. The circular flow model, measurement of growth, and national income analysis are used to illustrate the multiplier effect . A chapter identifies cost living as a basis for comparing the different lifestyles during various points in time. Productivity is also tackled as a determinant of the quality of life and the standard of living of the members of the society . It is followed by a discussion on savings, investment, and the financial system and their role in the Philippine economy. These concepts are then put into practice by introducing the financial markets. By analyzing data for inflation, labor and unemployment in the country, readers may glean the current status of the Philippine economy relative to time and setting. The latter chapters introduce money, money growth, and monetary policy and explain the government's attempt to control the supply of money in the economy to achieve stability and growth. A discussion on fiscal policy, an added chapter for the second edition, ends this volume. This edition also includes additional examples to further explain the concepts, as well as more seat works to assess student's comprehension. Summing up, this textbook provides an overall view of microeconomics and helps students analyze the present state of the economy with regard to the effects of economic principles and the interplay of households, firms, and the government. Keyword: demand and supply, productivity, money, money growth, economy