Third Edition. Topics common to both macroeconomics and microeconomics are covered in the first four chapters. Limiting the introductory material to four chapters saves precious class time, particularly at institutions where students can take macro and micro courses in either order (and hence where students are likely to end up repeating the introductory chapters). This edition reflects the growing impact of the world economy on U.S. economic welfare. The book stresses the interdependence between the U.S. economy and the rest of the world. International issues are introduced early and are discussed often.