xvi

CHAPTER 1

NEW ISSUE: Would a city change its name for a game show?

NEW PRINCIPLE: Economic growth, low unemployment, and low inflation are three economic goals that do not always coincide.

AROUND THE WORLD: Nunavut, abundance and scarcity

CHAPTER 2

AROUND THE WORLD: Ironbridge and the start of the Industrial Revolution

NEW ISSUE: the ocean and land reclamation

CHAPTER 3

AROUND THE WORLD: Tokyo Disneyland and how people deal with long lines

CHAPTER 4

AROUND THE WORLD: Singapore’s attempt to control traffic by using peak-pricing tolls

CHAPTER 5

NEW CHAPTER OPENER: covers a broad range of issues, including the introduction of classical vs. Keynesian economics

CONTENT REVISIONS: fewer subcategories in section on income approach to GDP; clearer breakdown of national income in Table 3; differences between nominal GDP, real GDP, and GDP-PPP clarified

AROUND THE WORLD: Costa Rica, happiness, and GDP

CHAPTER 6

CONTENT REVISION: rewritten section on underemployment and discouraged workers, with key data better linked to Department of Labor definitions

AROUND THE WORLD: boom and bust in Dickinson, North Dakota

CHAPTER 7

NEW INTRODUCTION: China’s current growth problems

NEW ISSUE: the argument that dramatic growth in the United States in the 20th century is a thing of the past, and will not be so transformative in the future

AROUND THE WORLD: growth champion Kazakhstan

CHAPTER 8

Thoroughly updated introduction

CONTENT REVISION: more prominent multiplier section

AROUND THE WORLD: how the Beco do Batman area in Brazil turned graffiti into an engine for economic growth

xvii

CHAPTER 9

CONTENT REVISIONS: clarification of the effect of “business expectations”; how interest rates affect AD through consumption and investment

AROUND THE WORLD: Myanmar and what it takes to open up a military regime to democracy

CHAPTER 10

CONTENT REVISIONS: shortened discussion of taxes and fewer equations; examination of the concepts of injections and withdrawals; clarification of national and public debt

AROUND THE WORLD: fiscal policy as an engine of growth in Qatar

CHAPTER 11

CONTENT REVISIONS: downplay of traveler’s checks as part of M1; expanded discussion of government deficits on the market for loanable funds includes an explanation of how government borrowing actually reduces private saving

AROUND THE WORLD: use of plastic money (literally) in Australia

CHAPTER 12

AROUND THE WORLD: the rise and fall of the Swiss Bank account

CHAPTER 13

CONTENT REVISIONS: updated sections on the Eurozone crisis and monetary theories

AROUND THE WORLD: why a South American country would use the U.S. dollar as its own currency

CHAPTER 14

AROUND THE WORLD: post-unification Germany

CHAPTER 15

AROUND THE WORLD: how China’s New Year’s festival disrupts international trade

CHAPTER 16

AROUND THE WORLD: Hyder, Alaska, a town in the United States that uses Canadian currency and Canadian public services