PART 1 INTRODUCTION TO ECONOMICS 1
1 Introducing the Economic Way of Thinking 2
APPENDIX TO CHAPTER 1 Applying Graphs to Economics 20
2 Production Possibilities,Opportunity Cost,and Economic Growth 32
3 Market Demand and Supply 50
4 Markets in Action 79
APPENDIX TO CHAPTER 4 Applying Supply and Demand Analysis to Health Care 100
PART 2 MACROECONOMIC FUNDAMENTALS 105
5 Gross Domestic Product 106
APPENDIX TO CHAPTER 5 A Four-Sector Circular Flow Model 132
6 Business Cycles and Unemployment 134
7 Inflation 158
PART 3 MACROECONOMIC THEORY AND POLICY 177
8 The Keynesian Model 178
9 The Keynesian Model in Action 202
10 Aggregate Demand and Supply 223
APPENDIX TO CHAPTER 10 The Self-Correcting Aggregate Demand and Supply Model 248
11 Fiscal Policy 256
12 The Public Sector 277
13 Federal Deficits,Surpluses,and the National Debt 300
PART 4 MONEY,BANKING,AND MONETARY POLICY 323
14 Money and the Federal Reserve System 324
15 Money Creation 345
16 Monetary Policy 366
17 The Phillips Curve and Expectations Theory 392
PART 5 THE INTERNATIONAL ECONOMY 417
18 International Trade and Finance 418
Appendix A Answers to Odd-Numbered Study Questions and Problems 451
Appendix B Practice Quiz Answers 463
Appendix C United States Gross Domestic Product and Related Statistics 465
Glossary 475
Index 483