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Macroeconomics, Third Edition

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This book brings these theories together under one methodological roof, where the choices made by economic agents depend on their varying perceptions of the economic constraints they face, combining new classical principles, under which the economy operates at full employment, with theories that allow for extended periods of underemployment brought about by mixed signals from workers and employers.

The task of macroeconomics is to provide the tools for understanding the performance of the ag...