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
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.