The accompanying text is designed to provide a compact, easy-to- read treatment of the basic principles in macroeconomics. Through- out the text, emphasis is placed on an understanding of the con- cepts and on their possible applications. Where examples can be useful to illustrate a concept, an effort is made to utilize those that are likely to be included in the students' range of of experiences. Of course, the macro concepts are closely related to many issues of the day that are in the forefront of the news. Hence, much of the book deals with applying the concepts to problems that most students already are familiar with. After reading the text, no student who is intellectually honest should be able to say that economic principles are not useful or relevant in making economic decisions or solving economic problems.