Macroeconomics is concerned with the economy as a whole. In macroeconomics, we develop an overall view of the economic system, and we study total (or aggregate) economic behaviour. The emphasis is on topics such as total production, income and expenditure, economic growth, aggregate unemployment, the general price level, inflation and the balance of payments. Macroeconomics is therefore the world of totals.

The structure of the third edition of Understanding macroeconomics remains the same as that of the second edition, but references to recent events such as COVID-19, the Government of National Unity, the overhaul of US trade tariffs and changes in the South African Reserve Bank’s monetary policy framework that affect various sectors of the economy have been incorporated to ensure that the content remains relevant and contemporary. As in the previous edition, the easy style and practical examples make the content extremely accessible. A wealth of relevant information about the South African economy is also provided. For many of the chapters, relevant case studies have been incorporated in the review questions, providing the opportunity for students to apply the theoretical knowledge to a practical real-life situation.

A companion to this book, Understanding microeconomics, is also available.

Philip Mohr is a retired professor of economics.
Anmar Pretorius is an associate professor of economics at North West University.
Cecilia van Zyl is a senior lecturer in economics at the University of South Africa.
Thabang Malatji is a lecturer in economics at the University of South Africa.