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

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.