Front Matter Introduction

MACROECONOMICS

FOURTH EDITION

Paul Krugman

Princeton University

Robin Wells

Vice President, Editorial: Charles Linsmeier

Publisher: Shani Fisher

Marketing Manager: Tom Digiano

Marketing Assistant: Alex Kaufman

Executive Development Editor: Sharon Balbos

Consultant: Ryan Herzog

Executive Media Editor: Rachel Comerford

Media Editor: Lukia Kliossis

Editorial Assistant: Carlos Marin

Director of Editing, Design, and Media Production: Tracey Kuehn

Managing Editor: Lisa Kinne

Project Editor: Jeanine Furino

Senior Design Manager: Vicki Tomaselli

Cover Design: Brian Sheridan, Hothouse Designs, Inc.

Illustrations: TSI evolve, Network Graphics

Illustration Coordinator: Janice Donnola

Photo Editor: Cecilia Varas

Photo Researcher: Elyse Rieder

Production Managers: Barbara Anne Seixas, Stacey Alexander

Supplements Project Editor: Edgar Bonilla

Composition: TSI evolve

Printing and Binding: RR Donnelley

ISBN-13: 978-1-4641-1037-5

ISBN-10: 1-4641-1037-9

Library of Congress Control Number: 2015930274

© 2015, 2013, 2009, 2006 by Worth Publishers

All rights reserved.

Printed in the United States of America

First printing

Worth Publishers

41 Madison Avenue

New York, NY 10010

www.worthpublishers.com

Cover Photos Credits

Central Photo: Lobby in the rush hour is made in the manner of blur and a blue tonality: blurAZ/Shutterstock

First Row (left to right): Female Korean factory worker: Image Source/Getty Images; Market food: Izzy Schwartz/Getty Images; High gas prices in Fremont, California: Mpiotti/Getty Images

Second Row: Red sports car: Shutterstock; View of smoking coal power plant: iStockphoto/Thinkstock; Lab technician using microscope: Jim Arbogast/Getty Images

Third Row: Lightbulbs in box: © fStop/Alamy; Market food: Izzy Schwartz/Getty Images

Fourth Row: Set of coloured flags of many nations of the world: © FC_Italy/Alamy; Stack of cargo containers at sunrise in an intermodal yard: Shutterstock; Depression era photo of man holding sign: The Image Works

Fifth Row: Stock market quotes from a computer screen: Stephen VanHorn/Shutterstock; Portrait of a college student on campus: pkchai/Shutterstock; Peaches: Stockbyte/Photodisc

Sixth Row: Rear view of people window shopping: Thinkstock; Power plant pipes: Corbis; Power lines: Brand X Pictures; Three students taking a test: © Royalty-Free/Corbis; Paper money: Shutterstock

Seventh Row: Woman from the Sacred Valley of the Incas: hadynyah/Getty Images; Paint buckets with various colored paint: Shutterstock; Close up of hands woman using her cell phone: Shutterstock; Paper money: Shutterstock

Eighth Row: Cows: Stockbyte/Photodisc; Wind turbine farm over sunset: Ted Nad/Shutterstock; Wall Street sign: thinkstock; Busy shopping street Center Gai Shibuya, Tokyo: Tom Bonaventure/Photographer’s Choice RF/Getty Images; Paper money: Shutterstock

Ninth/Tenth Rows: Waiter in Panjim: Steven Miric/Getty Images; Group of friends carrying shopping bags on city street: Monkey Business Images/Shutterstock; Set of coloured flags of many nations of the world: © FC_Italy/Alamy; Soybean Field: Fotokostic/Shutterstock; Drilling rig workers: Istockphoto; Tropical fish and hard corals in the Red Sea, Egypt: Vlad61/Shutterstock; Modern train on platform: Shutterstock

Eleventh/Twelfth Rows: Paper money: Shutterstock; View of smoking coal power plant: iStockphoto/Thinkstock; Welder: Tristan Savatier/Getty Images; container ship: EvrenKalinbacak/Shutterstock; Market food: Izzy Schwartz/Getty Images; Modern train on platform: Shutterstock

Thirteenth Row: Printing U.S. dollar banknotes: Thinkstock; Stock market quotes from a computer screen: Stephen VanHorn/Shutterstock

To beginning students everywhere, which we all were at one time.