,Macroeconomics
Sixth Edition
Global Edition
STEPHEN D. WILLIAMSON
,Vice President, Business Publishing: Donna Battista Managing Producer, Business: Alison Kalil
Director of Portfolio Management: Adrienne D’Ambrosio Content Producer, Global Edition: Nikhil Rakshit
Director, Courseware Portfolio Management: Operations Specialist: Carol Melville
Ashley Dodge Creative Director: Blair Brown
Senior Sponsoring Editor: Neeraj Bhalla Manager, Learning Tools: Brian Surette
Editorial Assistant: Michelle Zeng Managing Producer, Digital Studio, Arts and Business:
Associate Acquisitions Editor, Global Edition: Diane Lombardo
Ananya Srivastava Digital Studio Producer: Melissa Honig
Project Editor, Global Edition: Punita Kaur Mann Digital Studio Producer: Alana Coles
Vice President, Product Marketing: Roxanne McCarley Digital Content Team Lead: Noel Lotz
Director of Strategic Marketing: Brad Parkins Digital Content Project Lead: Courtney Kamauf
Strategic Marketing Manager: Deborah Strickland Manager, Media Production: M. Vikram Kumar
Product Marketer: Tricia Murphy Senior Manufacturing Controller, Global Edition:
Field Marketing Manager: Ramona Elmer Trudy Kimber
Field Marketing Assistant: Kristen Compton Full-Service Project Management and Composition:
Product Marketing Assistant: Jessica Quazza SPi Global
Vice President, Production and Digital Studio, Arts and Interior Design: SPi Global
Business: Etain O’Dea Cover Design: Lumina Datamatics, Inc.
Director of Production, Business: Jeff Holcomb Cover Art: Cristal Tran./Shutterstock
Pearson Education Limited
KAO Two
KAO Park
Harlow
CM17 9NA
United Kingdom
and Associated Companies throughout the world
Visit us on the World Wide Web at: www.pearsonglobaleditions.com
© Pearson Education Limited 2018
The rights of Stephen D. Williamson to be identified as the authors of this work have been asserted by them in
accordance with the Copyright, Designs and Patents Act 1988.
Authorized adaptation from the United States edition, entitled Macroeconomics, 6th edition, ISBN 978-0-13-447211-9, by
Stephen D. Williamson, published by Pearson Education © 2018.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior
written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any trademark in this text does
not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such
trademarks imply any affiliation with or endorsement of this book by such owners.
ISBN 10: 1-292-21576-3
ISBN 13: 978-1-29-221576-1
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Typeset in ITC Berkeley Oldstyle Pro by SPi Global
Printed and bound by Vivar in Malaysia
, The Pearson Series in Economics
Abel/Bernanke/Croushore Daniels/VanHoose Heilbroner/Milberg
Macroeconomics*† International Monetary & The Making of the Economic
Financial Economics Society
Acemoglu/Laibson/List
Economics*† Downs Heyne/Boettke/Prychitko
An Economic Theory of The Economic Way of Thinking
Bade/Parkin
Democracy
Foundations of Economics*† Holt
Ehrenberg/Smith Markets, Games, and Strategic
Berck/Helfand Behavior
The Economics of the Environment Modern Labor Economics
Farnham Hubbard/O’Brien
Bierman/Fernandez Economics*†
Game Theory with Economic Economics for Managers
Applications Money, Banking, and the Financial
Folland/Goodman/Stano
System*
Blanchard The Economics of Health and
Macroeconomics*† Health Care Hubbard/O’Brien/Rafferty
Macroeconomics*
Blau/Ferber/Winkler Fort
The Economics of Women, Men, Sports Economics Hughes/Cain
and Work American Economic History
Ehrenberg/Smith
Boardman/Greenberg/Vining/ Modern Labor Economics Husted/Melvin
Weimer International Economics
Cost-Benefit Analysis Froyen
Macroeconomics: Theories and Jehle/Reny
Boyer Policies Advanced Microeconomic Theory
Principles of Transportation
Economics Fusfeld Johnson-Lans
The Age of the Economist A Health Economics Primer
Brander/Perloff
Managerial Economics and Gerber Keat/Young/Erfle
Strategy*† International Economics*† Managerial Economics
Branson González-Rivera Klein
Macroeconomic Theory and Forecasting for Economics Mathematical Methods for
Policy and Business Economics
Bruce Krugman/Obstfeld/Melitz
Gordon
Public Finance and the American International Economics: Theory
Macroeconomics*
Economy & Policy*†
Greene
Carlton/Perloff Laidler
Econometric Analysis†
Modern Industrial Organization* The Demand for Money
Gregory
Case/Fair/Oster Leeds/von Allmen
Essentials of Economics
Principles of Economics*† The Economics of Sports
Gregory/Stuart
Chapman Russian and Soviet Economic Leeds/von Allmen/Schiming
Environmental Economics: Theory, Performance and Structure Economics*
Application, and Policy Lynn
Hartwick/Olewiler
Cooter/Ulen The Economics of Natural Economic Development: Theory
Law and Economics Resource Use and Practice for a Divided World
Sixth Edition
Global Edition
STEPHEN D. WILLIAMSON
,Vice President, Business Publishing: Donna Battista Managing Producer, Business: Alison Kalil
Director of Portfolio Management: Adrienne D’Ambrosio Content Producer, Global Edition: Nikhil Rakshit
Director, Courseware Portfolio Management: Operations Specialist: Carol Melville
Ashley Dodge Creative Director: Blair Brown
Senior Sponsoring Editor: Neeraj Bhalla Manager, Learning Tools: Brian Surette
Editorial Assistant: Michelle Zeng Managing Producer, Digital Studio, Arts and Business:
Associate Acquisitions Editor, Global Edition: Diane Lombardo
Ananya Srivastava Digital Studio Producer: Melissa Honig
Project Editor, Global Edition: Punita Kaur Mann Digital Studio Producer: Alana Coles
Vice President, Product Marketing: Roxanne McCarley Digital Content Team Lead: Noel Lotz
Director of Strategic Marketing: Brad Parkins Digital Content Project Lead: Courtney Kamauf
Strategic Marketing Manager: Deborah Strickland Manager, Media Production: M. Vikram Kumar
Product Marketer: Tricia Murphy Senior Manufacturing Controller, Global Edition:
Field Marketing Manager: Ramona Elmer Trudy Kimber
Field Marketing Assistant: Kristen Compton Full-Service Project Management and Composition:
Product Marketing Assistant: Jessica Quazza SPi Global
Vice President, Production and Digital Studio, Arts and Interior Design: SPi Global
Business: Etain O’Dea Cover Design: Lumina Datamatics, Inc.
Director of Production, Business: Jeff Holcomb Cover Art: Cristal Tran./Shutterstock
Pearson Education Limited
KAO Two
KAO Park
Harlow
CM17 9NA
United Kingdom
and Associated Companies throughout the world
Visit us on the World Wide Web at: www.pearsonglobaleditions.com
© Pearson Education Limited 2018
The rights of Stephen D. Williamson to be identified as the authors of this work have been asserted by them in
accordance with the Copyright, Designs and Patents Act 1988.
Authorized adaptation from the United States edition, entitled Macroeconomics, 6th edition, ISBN 978-0-13-447211-9, by
Stephen D. Williamson, published by Pearson Education © 2018.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior
written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any trademark in this text does
not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such
trademarks imply any affiliation with or endorsement of this book by such owners.
ISBN 10: 1-292-21576-3
ISBN 13: 978-1-29-221576-1
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Typeset in ITC Berkeley Oldstyle Pro by SPi Global
Printed and bound by Vivar in Malaysia
, The Pearson Series in Economics
Abel/Bernanke/Croushore Daniels/VanHoose Heilbroner/Milberg
Macroeconomics*† International Monetary & The Making of the Economic
Financial Economics Society
Acemoglu/Laibson/List
Economics*† Downs Heyne/Boettke/Prychitko
An Economic Theory of The Economic Way of Thinking
Bade/Parkin
Democracy
Foundations of Economics*† Holt
Ehrenberg/Smith Markets, Games, and Strategic
Berck/Helfand Behavior
The Economics of the Environment Modern Labor Economics
Farnham Hubbard/O’Brien
Bierman/Fernandez Economics*†
Game Theory with Economic Economics for Managers
Applications Money, Banking, and the Financial
Folland/Goodman/Stano
System*
Blanchard The Economics of Health and
Macroeconomics*† Health Care Hubbard/O’Brien/Rafferty
Macroeconomics*
Blau/Ferber/Winkler Fort
The Economics of Women, Men, Sports Economics Hughes/Cain
and Work American Economic History
Ehrenberg/Smith
Boardman/Greenberg/Vining/ Modern Labor Economics Husted/Melvin
Weimer International Economics
Cost-Benefit Analysis Froyen
Macroeconomics: Theories and Jehle/Reny
Boyer Policies Advanced Microeconomic Theory
Principles of Transportation
Economics Fusfeld Johnson-Lans
The Age of the Economist A Health Economics Primer
Brander/Perloff
Managerial Economics and Gerber Keat/Young/Erfle
Strategy*† International Economics*† Managerial Economics
Branson González-Rivera Klein
Macroeconomic Theory and Forecasting for Economics Mathematical Methods for
Policy and Business Economics
Bruce Krugman/Obstfeld/Melitz
Gordon
Public Finance and the American International Economics: Theory
Macroeconomics*
Economy & Policy*†
Greene
Carlton/Perloff Laidler
Econometric Analysis†
Modern Industrial Organization* The Demand for Money
Gregory
Case/Fair/Oster Leeds/von Allmen
Essentials of Economics
Principles of Economics*† The Economics of Sports
Gregory/Stuart
Chapman Russian and Soviet Economic Leeds/von Allmen/Schiming
Environmental Economics: Theory, Performance and Structure Economics*
Application, and Policy Lynn
Hartwick/Olewiler
Cooter/Ulen The Economics of Natural Economic Development: Theory
Law and Economics Resource Use and Practice for a Divided World
