FrontMatter

Title Page

Copyright

Dedication

Tribute to Jerry Stone

About the Author

Vision and Story of Economics

Principles for a Changing World

Rethinking the Connection Between Author, Text, and Technology

Thinking About Data Literacy

Thinking About What Global Means

Thorough Updating

Acknowledgments

CHAPTER 1: Exploring Economics

Chapter Introduction

BY THE NUMBERS

WHAT IS ECONOMICS ABOUT?

KEY PRINCIPLES OF ECONOMICS

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

Appendix

Graphs and Data

Graphs and Models

Linear Relationships

Nonlinear Relationships

Ceteris Paribus, Simple Equations, and Shifting Curves

Correlation Is Not Causation

CHAPTER 2: Production, Economic Growth, and Trade

Chapter Introduction

BY THE NUMBERS

BASIC ECONOMIC QUESTIONS AND PRODUCTION

PRODUCTION POSSIBILITIES AND ECONOMIC GROWTH

SPECIALIZATION, COMPARATIVE ADVANTAGE, AND TRADE

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 3: Supply and Demand

Chapter Introduction

BY THE NUMBERS

MARKETS

DEMAND

SUPPLY

MARKET EQUILIBRIUM

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 4: Markets and Government

Chapter Introduction

BY THE NUMBERS

CONSUMER AND PRODUCER SURPLUS: A TOOL FOR MEASURING ECONOMIC EFFICIENCY

USING CONSUMER AND PRODUCER SURPLUS: THE GAINS FROM TRADE

PRICE CEILINGS AND PRICE FLOORS

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 5: Introduction to Macroeconomics

Chapter Introduction

BY THE NUMBERS

BUSINESS CYCLES

NATIONAL INCOME ACCOUNTING

GDP AND OUR STANDARD OF LIVING

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 6: Measuring Inflation and Unemployment

Chapter Introduction

BY THE NUMBERS

INFLATION

UNEMPLOYMENT

UNEMPLOYMENT AND THE ECONOMY

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 7: Economic Growth

Chapter Introduction

BY THE NUMBERS

WHY IS ECONOMIC GROWTH IMPORTANT?

THINKING ABOUT SHORT-RUN AND LONG-RUN ECONOMIC GROWTH

APPLYING THE PRODUCTION FUNCTION: ACHIEVING ECONOMIC GROWTH

THE ROLE OF GOVERNMENT IN PROMOTING ECONOMIC GROWTH

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 8: Aggregate Expenditures

Chapter Introduction

BY THE NUMBERS

AGGREGATE EXPENDITURES

THE SIMPLE AGGREGATE EXPENDITURES MODEL

THE FULL AGGREGATE EXPENDITURES MODEL

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 9: Aggregate Demand and Supply

Chapter Introduction

BY THE NUMBERS

AGGREGATE DEMAND

AGGREGATE SUPPLY

MACROECONOMIC EQUILIBRIUM

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

Appendix: Deriving the Aggregate Demand Curve

CHAPTER 10: Fiscal Policy and Debt

Chapter Introduction

BY THE NUMBERS

FISCAL POLICY AND AGGREGATE DEMAND

FISCAL POLICY AND AGGREGATE SUPPLY

IMPLEMENTING FISCAL POLICY

FINANCING THE FEDERAL GOVERNMENT

WHY IS THE PUBLIC DEBT SO IMPORTANT?

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 11: Saving, Investment, and the Financial System

Chapter Introduction

BY THE NUMBERS

WHAT IS MONEY?

THE MARKET FOR LOANABLE FUNDS

THE FINANCIAL SYSTEM

FINANCIAL TOOLS FOR A BETTER FUTURE

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 12: Money Creation and the Federal Reserve

Chapter Introduction

BY THE NUMBERS

HOW BANKS CREATE MONEY

THE MONEY MULTIPLIER AND ITS LEAKAGES

THE FEDERAL RESERVE SYSTEM

THE FEDERAL RESERVE AT WORK: TOOLS, TARGETS, AND POLICY LAGS

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 13: Monetary Policy

Chapter Introduction

BY THE NUMBERS

WHAT IS MONETARY POLICY?

MONETARY THEORIES

MODERN MONETARY POLICY

NEW MONETARY POLICY CHALLENGES

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 14: Macroeconomic Policy: Challenges in a Global Economy

Chapter Introduction

BY THE NUMBERS

THE GREAT RECESSION AND MACROECONOMIC POLICY

EFFECTIVENESS OF MACROECONOMIC POLICY: PHILLIPS CURVES AND RATIONAL EXPECTATIONS

MACROECONOMIC ISSUES THAT CONFRONT OUR FUTURE

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 15: International Trade

Chapter Introduction

BY THE NUMBERS

THE GAINS FROM TRADE

THE TERMS OF TRADE

ARGUMENTS AGAINST FREE TRADE

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

CHAPTER 16: Open Economy Macroeconomics

Chapter Introduction

BY THE NUMBERS

THE BALANCE OF PAYMENTS

EXCHANGE RATES

MONETARY AND FISCAL POLICY IN AN OPEN ECONOMY

Chapter Summary

KEY CONCEPTS

QUESTIONS AND PROBLEMS

Sources for By the Numbers

Sources for By the Numbers