Macroeconomics : principles and policy

Cover
Brief Contents
Table of Contents
Available Versions
Preface
About the Authors
Part 1: Getting Acquainted with Economics
	Chapter 1: What Is Economics?
		1-1 Ideas for beyond the Final Exam
		1-2 Inside the Economist's Tool Kit
		Summary
		Key Terms
		Discussion Questions
		Appendix: Using Graphs: A Review
	Chapter 2: The Economy: Myth and Reality
		2-1 The American Economy: A Thumbnail Sketch
		2-2 The Inputs: Labor and Capital
		2-3 The Outputs: What Does America Produce?
		2-4 The Central Role of Business Firms
		2-5 What's Missing from the Picture? Government
		2-6 Conclusion: It's a Mixed Economy
		Summary
		Key Terms
		Discussion Questions
	Chapter 3: The Fundamental Economic Problem: Scarcity and Choice
		3-1 Scarcity, Choice, and Opportunity Cost
		3-2 Scarcity and Choice for a Single Firm
		3-3 Scarcity and Choice for the Entire Society
		3-4 The Three Coordination Tasks of Any Economy
		3-5 The Concept of Efficiency
		3-6 Task 1. How the Market Fosters Efficient Resource Allocation
		3-7 Task 2. Market Exchange and Deciding How Much of Each Good to Produce
		3-8 Task 3. How to Distribute the Economy's Outputs among Consumers
		3-9 Looking Ahead
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
	Chapter 4: Supply and Demand: An Initial Look
		4-1 The Invisible Hand
		4-2 Demand and Quantity Demanded
		4-3 Supply and Quantity Supplied
		4-4 Supply and Demand Equilibrium
		4-5 Effects of Demand Shifts on Supply-Demand Equilibrium
		4-6 Supply Shifts and Supply-Demand Equilibrium
		4-7 Battling the Invisible Hand: The Market Fights Back
		4-8 A Simple But Powerful Lesson
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
Part 2: The Macroeconomy: Aggregate Supply and Demand
	Chapter 5: An Introduction to Macroeconomics
		5-1 Drawing a Line between Macroeconomics and Microeconomics
		5-2 Supply and Demand in Macroeconomics
		5-3 Gross Domestic Product
		5-4 The Economy on a Roller Coaster
		5-5 The Problem of Macroeconomic Stabilization: A Sneak Preview
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
	Chapter 6: The Goals of Macroeconomic Policy
		6-1 The Goal of Economic Growth
		6-2 The Capacity to Produce: Potential GDP and the Production Function
		6-3 The Growth Rate of Potential GDP
		6-4 The Goal of Low Unemployment
		6-5 The Human Costs of High Unemployment
		6-6 Counting the Unemployed: The Official Statistics
		6-7 Types of Unemployment
		6-8 How Much Employment Is "Full Employment"?
		6-9 Unemployment Insurance: The Invaluable Cushion
		6-10 The Goal of Low Inflation
		6-11 Inflation as a Redistributor of Income and Wealth
		6-12 Real versus Nominal Interest Rates
		6-13 Inflation Distorts Measurements
		6-14 Other Costs of Inflation
		6-15 The Costs of Low versus High Inflation
		6-16 Low Inflation Does Not Necessarily Lead to High Inflation
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
		Appendix: How Statisticians Measure Inflation
	Chapter 7: Economic Growth: Theory and Policy
		7-1 The Three Pillars of Productivity Growth
		7-2 Levels, Growth Rates, and the Convergence Hypothesis
		7-3 Growth Policy: Encouraging Capital Formation
		7-4 Growth Policy: Improving Education and Training
		7-5 Growth Policy: Spurring Technological Change
		7-6 Recent Productivity Performance in the United States
		7-7 Growth in the Developing Countries
		7-8 From the Long Run to the Short Run
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
	Chapter 8: Aggregate Demand and the Powerful Consumer
		8-1 Aggregate Demand, Domestic Product, and National Income
		8-2 The Circular Flow of Spending, Production, and Income
		8-3 Consumer Spending and Income: The Important Relationship
		8-4 The Consumption Function and the Marginal Propensity to Consume
		8-5 Factors That Shift the Consumption Function
		8-6 The Extreme Variability of Investment
		8-7 The Determinants of Net Exports
		8-8 How Predictable Is Aggregate Demand?
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
		Appendix: National Income Accounting
	Chapter 9: Demand-Side Equilibrium: Unemployment or Inflation?
		9-1 The Meaning of Equilibrium GDP
		9-2 The Mechanics of Income Determination
		9-3 The Aggregate Demand Curve
		9-4 Demand-Side Equilibrium and Full Employment
		9-5 The Coordination of Saving and Investment
		9-6 Changes on the Demand Side: Multiplier Analysis
		9-7 The Multiplier Is a General Concept
		9-8 The Multiplier and the Aggregate Demand Curve
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
		Appendix A: The Simple Algebra of Income Determination and the Multiplier
		Appendix B: The Multiplier with Variable Imports
	Chapter 10: Bringing in the Supply Side: Unemployment and Inflation?
		10-1 The Aggregate Supply Curve
		10-2 Equilibrium of Aggregate Demand and Supply
		10-3 Inflation and the Multiplier
		10-4 Recessionary and Inflationary Gaps Revisited
		10-5 Adjusting to a Recessionary Gap: Deflation or Unemployment?
		10-6 Adjusting to an Inflationary Gap: Inflation
		10-7 Stagflation from a Supply Shock
		10-8 Applying the Model to a Growing Economy
		10-9 A Role for Stabilization Policy
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
Part 3: Fiscal and Monetary Policy
	Chapter 11: Managing Aggregate Demand: Fiscal Policy
		11-1 Income Taxes and the Consumption Schedule
		11-2 The Multiplier Revisited
		11-3 Planning Expansionary Fiscal Policy
		11-4 Planning Contractionary Fiscal Policy
		11-5 The Choice between Spending Policy and Tax Policy
		11-6 Some Harsh Realities
		11-7 The Idea behind Supply-Side Tax Cuts
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
		Appendix A: Graphical Treatment of Taxes and Fiscal Policy
		Appendix B: Algebraic Treatment of Taxes and Fiscal Policy
	Chapter 12: Money and the Banking System
		12-1 The Nature of Money
		12-2 How the Quantity of Money Is Measured
		12-3 The Banking System
		12-4 Systemic Risk and the "Too Big to Fail" Doctrine
		12-5 The Origins of the Money Supply
		12-6 Banks and Deposit Creation
		12-7 Why the Deposit-Creation Formula Is Oversimplified
		12-8 The Need for Monetary Policy
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
	Chapter 13: Monetary Policy: Conventional and Unconventional
		13-1 Money and Income: The Important Difference
		13-2 America's Central Bank: The Federal Reserve System
		13-3 Implementing Monetary Policy in Normal Times: Open-Market Operations
		13-4 Other Instruments of Monetary Policy
		13-5 How Monetary Policy Works in Normal Times
		13-6 Money and the Price Level
		13-7 Application: Why the Aggregate Demand Curve Slopes Downward
		13-8 Unconventional Monetary Policies
		13-9 From Financial Distress to Recession
		13-10 From Models to Policy Debates
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
	Chapter 14: The Financial Crisis and the Great Recession
		14-1 Roots of the Crisis
		14-2 Leverage, Profits, and Risk
		14-3 The Housing Price Bubble and the Subprime Mortgage Crisis
		14-4 From the Housing Bubble to the Financial Crisis
		14-5 From the Financial Crisis to the Great Recession
		14-6 Hitting Bottom and Recovering
		14-7 Lessons from the Financial Crisis
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
	Chapter 15: The Debate over Monetary and Fiscal Policy
		15-1 Velocity and the Quantity Theory of Money
		15-2 Debate: Should the Fed Use Unconventional Monetary Policies?
		15-3 Debate: Should Policymakers Fight Asset Price Bubbles?
		15-4 Debate: Should We Rely on Fiscal or Monetary Policy?
		15-5 Debate: The Shape of the Aggregate Supply Curve
		15-6 Debate: Should the Government Intervene at All?
		15-7 Dimensions of the Rules-versus-Discretion Debate
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
	Chapter 16: Budget Deficits in the Short and Long Run
		16-1 Should the Budget Always Be Balanced? The Short Run
		16-2 The Importance of the Policy Mix
		16-3 Deficits and Debt: Terminology and Facts
		16-4 Interpreting the Budget Deficit or Surplus
		16-5 Why Is the National Debt Considered a Burden?
		16-6 Budget Deficits and Inflation
		16-7 Debt, Interest Rates, and Crowding Out
		16-8 The Main Burden of the National Debt: Slower Growth
		16-9 The Economics and Politics of the U.S. Budget Deficit
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
	Chapter 17: The Trade-Off between Inflation and Unemployment
		17-1 Demand-Side Inflation versus Supply-Side Inflation: A Review
		17-2 Origins of the Phillips Curve
		17-3 Supply-Side Inflation and the Collapse of the Phillips Curve
		17-4 What the Phillips Curve Is Not
		17-5 Fighting Unemployment with Fiscal and Monetary Policy
		17-6 What Should Be Done?
		17-7 Inflationary Expectations and the Phillips Curve
		17-8 The Theory of Rational Expectations
		17-9 Why Economists (and Politicians) Disagree
		17-10 The Dilemma of Demand Management
		17-11 Attempts to Improve the Trade-Off
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
Part 4: The United States in the World Economy
	Chapter 18: International Trade and Comparative Advantage
		18-1 Why Trade?
		18-2 International versus Intranational Trade
		18-3 The Principle of Comparative Advantage
		18-4 The Arithmetic of Comparative Advantage
		18-5 Tariffs, Quotas, and Other Interferences with Trade
		18-6 Why Inhibit Trade?
		18-7 Can Cheap Imports Hurt a Country?
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
		Appendix: Supply, Demand, and Pricing in World Trade
	Chapter 19: The International Monetary System: Order or Disorder?
		19-1 What Are Exchange Rates?
		19-2 Exchange Rate Determination in a Free Market
		19-3 When Governments Fix Exchange Rates: The Balance of Payments
		19-4 A Bit of History: The Gold Standard and the Bretton Woods System
		19-5 Adjustment Mechanisms under Fixed Exchange Rates
		19-6 Why Try to Fix Exchange Rates?
		19-7 The Current "Nonsystem"
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
	Chapter 20: Exchange Rates and the Macroeconomy
		20-1 International Trade, Exchange Rates, and Aggregate Demand
		20-2 Aggregate Supply in an Open Economy
		20-3 The Macroeconomic Effects of Exchange Rates
		20-4 Fiscal and Monetary Policies in an Open Economy
		20-5 International Aspects of Deficit Reduction
		20-6 Should We Worry about the Trade Deficit?
		20-7 On Curing the Trade Deficit
		20-8 Conclusion: No Nation Is an Island
		Summary
		Key Terms
		Test Yourself
		Discussion Questions
Part 5: The Economy Today
	Chapter 21: Contemporary Issues in the U.S. Economy
		21-1 Can We Grow Much Faster Than 2 Percent a Year?
		21-2 Who Loses from Globalization?
		21-3 Are Trade Wars "Good and Easy to Win"?
		21-4 Where Is the National Debt Headed?
		21-5 Has the Phillips Curve Disappeared?
		Summary
		Key Terms
		Discussion Questions
Appendix
Glossary
Index