Front Matter Introduction
ABOUT THE AUTHORS
PREFACE
Macroeconomics in the Fourth Edition: What's New?
TOOLS FOR LEARNING WALKTHROUGH
Resources for Students and Instructors
Chapter Introduction
Why Governments Control Prices
Price Ceilings
Price Floors
Controlling Quantities
Summary
Key Terms
Problems
Chapter Introduction
Comparative Advantage and International Trade
Supply, Demand, and International Trade
The Effects of Trade Protection
The Political Economy of Trade Protection
Summary
Key Terms
Problems
Consumer and Producer Surplus
Consumer Surplus and the Demand Curve
Producer Surplus and the Supply Curve
Problems
Chapter Introduction
The Nature of Macroeconomics
The Business Cycle
Long-Run Economic Growth
Inflation and Deflation
International Imbalances
Summary
Key Terms
Problems
Chapter Introduction
The National Accounts
Real GDP: A Measure of Aggregate Output
Price Indexes and the Aggregate Price Level
Summary
Key Terms
Problems
Chapter Introduction
The Unemployment Rate
The Natural Rate of Unemployment
Inflation and Deflation
Summary
Key Terms
Problems
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
Chapter Introduction
Matching Up Savings and Investment Spending
The Financial System
Financial Fluctuations
Summary
Key Terms
Problems
Toward a Fuller Understanding of Present Value
How to Calculate the Present Value of One-Year Projects
How to Calculate the Present Value of Multiyear Projects
How to Calculate the Present Value of Projects with Revenues and Costs
How to Calculate the Price of a Bond Using Present Value
Problems
Chapter Introduction
The Multiplier: An Informal Introduction
Consumer Spending
Investment Spending
The Income-Expenditure Model
Summary
Key Terms
Problems
Deriving the Multiplier Algebraically
PROBLEMS
Chapter Introduction
Aggregate Demand
Aggregate Supply
The AD-AS Model
Macroeconomic Policy
Summary
Key Terms
Problems
Chapter Introduction
Fiscal Policy: The Basics
Fiscal Policy and the Multiplier
The Budget Balance
Long-Run Implications of Fiscal Policy
Summary
Key Terms
Problems
Taxes and the Multiplier
PROBLEMS
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
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
Reconciling the Two Models of the Interest Rate
The Interest Rate in the Short Run
The Interest Rate in the Long Run
PROBLEMS
Chapter Introduction
Money and Inflation
Moderate Inflation and Disinflation
Inflation and Unemployment in the Long Run
Deflation
Summary
Key Terms
Problems
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
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
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