Featuring current, comprehensive discussions of rational expectations, real business cycles and information economics (moral hazard and adverse selection), this book on economics incorporates real-world applications where possible, strengthening the link between theory and reality. Straightforward explanations and examples, a treatment of macroeconomics and microeconomics, as well as pedagogy have made this book an important text in the field of economics.
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This new edition provides an economic model for the 1990s and beyond. It prunes away many old economic theories and models, making way for new empirical evidence pointing to a greater reliance on longer-term issues, such as growth, rather than a Keynesian preoccupation with the short term.
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