CONTENTSPREFACEPART 1 The Economic Way of Thinking 1
CHAPTER 1 The Economic Approach 5
CHAPTER 2 Some Tools of the Economist 31
PART 2 Markets and Government 53
CHAPTER 3 Supply,Demand,and the Market Process 55
CHAPTER 4 Supply and Demand:Applications and Extensions 89
CHAPTER 5 The Economic Role of Government 117
CHAPTER 6 The Economics of Collective Decision Making 143
PART 3 Core Macroeconomics 163
CHAPTER 7 Taking the Nation s Economic pulse 167
CHAPTER 8 Economic Fluctuations,Unemployments,and Inflation 191
CHAPTER 9 An Introduction to Basic Macroeconomic Markets 215
CHAPTER 10 Working with Our Basic Aggregate Demand/Aggregate Supply Model 243
CHAPTER 11 Keynesian Foundations of Modern Macroeconomics 269
CHAPTER 12 Fiscal Policy 293
CHAPTER 13 Money and the Banking System 319
CHAPTER 14 Modern Macroeconomics:Monetary Policy 351
CHAPTER 15 Stabilization Policy,Output,and Employment 379
CHAPTER 16 Economic Growth 403
PART 4 International Economics 427
CHAPTER 17 Gaining from International Trade 433
CHAPTER 18 International Finance and the Foreign Exehange Market 461
PART 5 Core Microeconomics 489
CHAPTER 19 Demand and Consumer Choice 495
CHAPTER 20 Costs and the Supply of Goods 527
CHAPTER 21 Price Takers and the Competitive Process 557
CHAPTER 22 Price-Searcher Markets with Low Entry Barriers 583
CHAPTER 23 Price-Searcher Markets with High Entry Barriers 607
CHAPTER 24 The Supply of and Demand for Productive Resources 637
CHAPTER 25 Earnings,Productivity,and the Job Market 665
CHAPTER 26 Investment,the Capital Market,and the Weallth of Nations 693
CHAPTER 27 Income Inequality and Poverty 713
PART 6 Applications and Special Topics 735
APPLICATION 1 Labor Markets and Unemployment Rates:A Cross-Country Analysis 739
APPLICATION 2 How Do Budget Deficits and the National Debt Affect FutureGenerations? 751
APPLICATION 3 The Phillips Curve:Is There a Trade-Off between Inflation andUnemployment? 765
APPLICATION 4 Social Security:The Nature ofthe Problem and the Alternatives for Dealing withIt 779
APPLICATION 5 The Stock Market:What Does It Do and How Has It Performed? 791
APPLICATION 6 How Does Government Regulation Affect Your Life? 803
APPLICATION 7 Income Inequality,Transfers,and the Role of Government 815
APPLICATION 8 Do Labor UnionsIncrease the Wages ofWorkers? 827
APPLICATION 9 Natural Resources and the Future 843
APPLICATION 10 Economics and the Environment 855
APPENDIX A General Business and Economic Indicators 867
APPENDIX B Answers to Selected Critical Analysis Questions 879
GLOSSARY 901
CREDITS 913
INDEX 915