Front Matter

Front Matter Introduction

ABOUT THE AUTHORS

PREFACE

Economics in the Fourth Edition: What's New?

TOOLS FOR LEARNING WALKTHROUGH

Resources for Students and Instructors

21: Macroeconomics: The Big Picture

Chapter Introduction

The Nature of Macroeconomics

The Business Cycle

Long-Run Economic Growth

Inflation and Deflation

International Imbalances

Summary

Key Terms

Problems

22: GDP and the CPI: Tracking the Macroeconomy

Chapter Introduction

The National Accounts

Real GDP: A Measure of Aggregate Output

Price Indexes and the Aggregate Price Level

Summary

Key Terms

Problems

23: Unemployment and Inflation

Chapter Introduction

The Unemployment Rate

The Natural Rate of Unemployment

Inflation and Deflation

Summary

Key Terms

Problems

24: Long-Run Economic Growth

Chapter Introduction

Comparing Economies Across Time and Space

The Sources of Long-Run Growth

Why Growth Rates Differ

Success, Disappointment, and Failure

Is World Growth Sustainable?

Summary

Key Terms

Problems

25: Savings, Investment Spending, and the Financial System

Chapter Introduction

Matching Up Savings and Investment Spending

The Financial System

Financial Fluctuations

Summary

Key Terms

Problems

26: Income and Expenditure

Chapter Introduction

The Multiplier: An Informal Introduction

Consumer Spending

Investment Spending

The Income-Expenditure Model

Summary

Key Terms

Problems

26 APPENDIX

Deriving the Multiplier Algebraically

PROBLEMS

27: Aggregate Demand and Aggregate Supply

Chapter Introduction

Aggregate Demand

Aggregate Supply

The AD-AS Model

Macroeconomic Policy

Summary

Key Terms

Problems

28: Fiscal Policy

Chapter Introduction

Fiscal Policy: The Basics

Fiscal Policy and the Multiplier

The Budget Balance

Long-Run Implications of Fiscal Policy

Summary

Key Terms

Problems

28 APPENDIX

Taxes and the Multiplier

PROBLEMS

29: Money, Banking, and the Federal Reserve System

Chapter Introduction

The Meaning of Money

The Monetary Role of Banks

Determining the Money Supply

The Federal Reserve System

The Evolution of the American Banking System

The Crisis in American Banking in the Early Twentieth Century

Summary

Key Terms

Problems

30: Monetary Policy

Chapter Introduction

The Demand for Money

Money and Interest Rates

Monetary Policy and Aggregate Demand

Money, Output, and Prices in the Long Run

Summary

Key Terms

Problems

30 APPENDIX

Reconciling the Two Models of the Interest Rate

The Interest Rate in the Short Run

The Interest Rate in the Long Run

PROBLEMS

31: Inflation, Disinflation, and Deflation

Chapter Introduction

Money and Inflation

Moderate Inflation and Disinflation

Inflation and Unemployment in the Long Run

Deflation

Summary

Key Terms

Problems

32: Crises and Consequences

Chapter Introduction

Banking: Benefits and Dangers

Banking Crises and Financial Panics

The Consequences of Banking Crises

The 2008 Crisis and Its Aftermath

Regulation in the Wake of the Crisis

Summary

Key Terms

Problems

33: Macroeconomics: Events and Ideas

Chapter Introduction

Classical Macroeconomics

The Great Depression and the Keynesian Revolution

Challenges to Keynesian Economics

Rational Expectations, Real Business Cycles, and New Classical Macroeconomics

Consensus and Conflict in Modern Macroeconomics

Summary

Key Terms

Problems

34: Open-Economy Macroeconomics

Chapter Introduction

Capital Flows and the Balance of Payments

The Role of the Exchange Rate

Exchange Rate Policy

Exchange Rates and Macroeconomic Policy

Summary

Key Terms

Problems

Macro Data Tables

Macro Data Tables