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-
ISBN-
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-
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.