Eleventh Edition ©2022 N.
Mankiw begins by defining economics: “Economics is the study of how society manages its scarce resources.
In most societies, resources are allocated … through the combined choices of millions of households and firms.
Macroeconomics is by definition a branch of economics which investigates the relationship among macroeconomic variables, such as national product, total employment, the monetary aggregate, the general price and the like.