Foundations of Economics, Global Edition

Name: Foundations of Economics, Global Edition
Price: 4580 ISK
Availability: InStock
Author: Robin Bade; Michael Parkin
ISBN: 9781292434186

Höfundar: Robin Bade; Michael Parkin (Útgáfa: 9)

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Foundations of Economics introduces you to economic principles you can use to navigate the financial decisions of your future. Each chapter concentrates on a manageable number of ideas, usually 3 to 4, with each reinforced several times throughout the text. This patient approach helps guide you through unfamiliar terrain and focuses you on the most important concepts and key skills, like reading and interpreting graphs.

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Útgefandi: Pearson International Content

ISBN: 9781292434186

Print ISBN: 9781292434230

Format: Page Fidelity (PDF)

Útgáfa: 9

Höfundar: Robin Bade; Michael Parkin

Tungumál: English

Útgefið: 2022-06-02

Prent takmörkun á líftíma: 100

Prent takmörkun: 2

Afritunar takmörkun: 2

Flokkar: Viðskiptafræði

Efnisflokkar: Viðskipti og hagfræði › Almennt

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Title Page
Copyright
Dedication
About the Authors
Brief Contents
Contents
Preface
Part 1: Introduction
Chapter 1. Getting Started
Chapter Checklist
1.1 Definition and Questions
Scarcity
Economics Defined
What, How, and For Whom?
Can the Pursuit of Self-Interest Be in the Social Interest?
Checkpoint 1.1
1.2 The Economic Way of Thinking
A Choice Is a Tradeoff
Cost: What You Must Give Up
Benefit: What You Gain
Rational Choice
How Much? Choosing at the Margin
Choices Respond to Incentives
Checkpoint 1.2
1.3 Economics as a Social Science and Policy Tool
Economics as a Social Science
Economics as a Policy Tool
Checkpoint 1.3
1.4 Economics as a Life Skill and Job Skill
Jobs for an Economics Major
Will the Number of Economics Jobs Grow?
How Much Do Economics Majors Earn?
Skills Needed for Economics Jobs
Economics for Life
Checkpoint 1.4
Chapter Summary
Chapter Checkpoint
Appendix: Making and Using Graphs
Interpreting Data Graphs
Interpreting Graphs Used in Economic Models
The Slope of a Relationship
Relationships Among More Than Two Variables
Appendix Checkpoint
Eye on the Benefit And Cost Of School: Did You Make the Right Decision?
Eye on Your Life: Your Time Allocation
Eye on the Past: Adam Smith and the Birth of Economics as a Social Science
Chapter 2. The U.S. and Global Economies
Chapter Checklist
2.1 What, How, and For Whom?
What Do We Produce?
How Do We Produce?
For Whom Do We Produce?
Checkpoint 2.1
2.2 The Global Economy
The People
The Economies
What in the Global Economy
How in the Global Economy
For Whom in the Global Economy
Checkpoint 2.2
2.3 The Circular Flows
Households and Firms
Markets
Real Flows and Money Flows
Governments
Governments in the Circular Flow
Circular Flows in the Global Economy
Checkpoint 2.3
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: What We Produce
Eye on the Past: Changes in What We Produce
Eye on the U.S. Economy: Changes in How We Produce in the Information Economy
Eye on the Dreamliner: Who Makes the Dreamliner?
Eye on the Global Economy: Differences in How We Produce
Eye on Your Life: The U.S. and Global Economies in Your Life
Eye on the Past: Growing Government
Eye on the Global Economy: The Ups and Downs in International Trade
Chapter 3. The Economic Problem
Chapter Checklist
3.1 Production Possibilities
Production Possibilities Frontier
How the PPF Illustrates Scarcity and Its Consequences
Checkpoint 3.1
3.2 Opportunity Cost
The Opportunity Cost of a Smartphone
Opportunity Cost and the Slope of the PPF
Opportunity Cost Is a Ratio
Increasing Opportunity Costs Are Everywhere
Your Increasing Opportunity Cost
Checkpoint 3.2
3.3 Economic Growth
Checkpoint 3.3
3.4 Specialization and Trade
Absolute Advantage and Comparative Advantage
Comparative Advantage: A Model
Achieving Gains from Trade
The Economy’s Production Possibilities Frontier
Checkpoint 3.4
Chapter Summary
Chapter Checkpoint
Eye on Your Life: Your Production Possibilities Frontier
Eye on the Environment: Is Wind Power Free?
Eye on the U.S. Economy: Expanding Our Production Possibilities
Eye on the Global Economy: Hong Kong’s Rapid Economic Growth
Eye on the U.S. Economy: No One Knows How to Make a Pencil
Eye on Your Life: Your Comparative Advantage
Chapter 4. Demand and Supply
Chapter Checklist
Competitive Markets
4.1 Demand
The Law of Demand
Demand Schedule and Demand Curve
Individual Demand and Market Demand
Changes in Demand
Change in Quantity Demanded Versus Change in Demand
Checkpoint 4.1
4.2 Supply
The Law of Supply
Supply Schedule and Supply Curve
Individual Supply and Market Supply
Changes in Supply
Change in Quantity Supplied Versus Change in Supply
Checkpoint 4.2
4.3 Market Equilibrium
Price: A Market’s Automatic Regulator
Predicting Price Changes: Three Questions
Effects of Changes in Demand
Effects of Changes in Supply
Effects of Changes in Both Demand and Supply
Checkpoint 4.3
Chapter Summary
Chapter Checkpoint
Eye on Your Life: Understanding and Using Demand and Supply
Eye on the Global Economy: The Markets for Cocoa and Chocolate
Eye on the Price Of Avocados: Why Does the Price of Avocados Fluctuate?
Part 2: A Closer Look At Markets
Chapter 5. Elasticities of Demand and Supply
Chapter Checklist
5.1 The Price Elasticity of Demand
Percentage Change in Price
Percentage Change in Quantity Demanded
Comparing the Percentage Changes in Price and Quantity
Elastic and Inelastic Demand
Influences on the Price Elasticity of Demand
Computing the Price Elasticity of Demand
Interpreting the Price Elasticity of Demand Number
Elasticity Along a Linear Demand Curve
Total Revenue and the Price Elasticity of Demand
Checkpoint 5.1
5.2 The Price Elasticity of Supply
Elastic and Inelastic Supply
Influences on the Price Elasticity of Supply
Computing the Price Elasticity of Supply
Checkpoint 5.2
5.3 Cross Elasticity and Income Elasticity
Cross Elasticity of Demand
Income Elasticity of Demand
Checkpoint 5.3
Chapter Summary
Chapter Checkpoint
Eye on the Global Economy: Price Elasticities of Demand
Eye on Elasticity At The Coffee Shop: What Do You Do When Starbucks Raises the Price of a Latte?
Eye on the U.S. Economy: Two Applications of the Price Elasticity of Demand
Eye on Your Life: Your Price Elasticities of Demand
Eye on the Price Of Avocados: Why Does the Price of Avocados Fluctuate?
Chapter 6. Efficiency and Fairness of Markets
Chapter Checklist
6.1 Allocation Methods and Efficiency
Resource Allocation Methods
Using Resources Efficiently
Checkpoint 6.1
6.2 Value, Price, and Consumer Surplus
Demand and Marginal Benefit
Consumer Surplus
Checkpoint 6.2
6.3 Cost, Price, and Producer Surplus
Supply and Marginal Cost
Producer Surplus
Checkpoint 6.3
6.4 Are Markets Efficient?
Marginal Benefit Equals Marginal Cost
Total Surplus Is Maximized
The Invisible Hand
Market Failure
Sources of Market Failure
Alternatives to the Market
Checkpoint 6.4
6.5 Are Markets Fair?
It’s Not Fair If the Rules Aren’t Fair
It’s Not Fair If the Result Isn’t Fair
Compromise
Checkpoint 6.5
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: The Invisible Hand and e-Commerce
Eye on Ticket Scalping: Should Ticket Scalping Be Illegal?
Eye on Your Life: Allocation Methods, Efficiency, and Fairness
Part 3: How Governments Influence The Economy
Chapter 7. Government Actions in Markets
Chapter Checklist
7.1 Price Ceilings
A Rent Ceiling
Are Rent Ceilings Efficient?
Are Rent Ceilings Fair?
If Rent Ceilings Are So Bad, Why Do We Have Them?
Checkpoint 7.1
7.2 Price Floors
The Minimum Wage
Is the Minimum Wage Efficient?
Is the Minimum Wage Fair?
If the Minimum Wage Is So Bad, Why Do We Have It?
Checkpoint 7.2
7.3 Production Quotas
Production Quota: An Example
Checkpoint 7.3
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: Minimum Wages and Employment
Eye on Price Regulation: Can Governments Repeal the Law of Market Forces?
Eye on the Global Economy: Production Quotas
Eye on Your Life Price: Ceilings and Price Floors You Encounter
Chapter 8. Taxes
Chapter Checklist
8.1 Taxes on Buyers and Sellers
Tax Incidence
Taxes and Efficiency
Tax Burden
Incidence, Inefficiency, and Elasticity
Incidence, Inefficiency, and the Elasticity of Demand
Incidence, Inefficiency, and the Elasticity of Supply
Checkpoint 8.1
8.2 Income Taxes and Social Security Taxes
The Effects of the Income Tax
The Social Security Tax
Checkpoint 8.2
8.3 Fairness and the Big Tradeoff
The Benefits Principle
The Ability-to-Pay Principle
Ability to Pay and Tax Progressivity
The Big Tradeoff and Alternative Tax Proposals
Checkpoint 8.3
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: Taxes in the United States Today
Eye on Congress: Does Congress Decide Who Pays the Taxes?
Eye on the Past: The Origins and History of the U.S. Income Tax
Eye on Your Life: Tax Freedom Day
Eye on the U.S. Economy: The Progressive Income Tax
Chapter 9. Global Markets in Action
Chapter Checklist
9.1 How Global Markets Work
International Trade Today
What Drives International Trade?
Why the United States Imports T-Shirts
Why the United States Exports Airplanes
Checkpoint 9.1
9.2 Winners, Losers, and Net Gains From Trade
Gains and Losses from Imports
Gains and Losses from Exports
Checkpoint 9.2
9.3 International Trade Restrictions
Tariffs
Import Quotas
Other Import Barriers
Export Subsidies
Checkpoint 9.3
9.4 The Case Against Protection
Three Traditional Arguments for Protection
Four Newer Arguments for Protection
Why Is International Trade Restricted?
Checkpoint 9.4
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: U.S. Exports and Imports
Eye on Globalization: Who Wins and Who Loses from Globalization?
Eye on the Past: The History of U.S. Tariffs
Eye on the U.S. Economy: A Tariff on Softwood Lumber
Eye on the U.S. Economy: An Import Quota on Sugar
Eye on Your Life: International Trade
Part 4: Market Failure And Public Policy
Chapter 10. Externalities
Chapter Checklist
Externalities in Our Daily Lives
Negative Production Externalities
Positive Production Externalities
Negative Consumption Externalities
Positive Consumption Externalities
10.1 Negative Externalities: Pollution
Private Costs and Social Costs
Production and Pollution: How Much?
Property Rights
Command-and-Control Regulation
Pollution Taxes
Cap-and-Trade
Checkpoint 10.1
10.2 Positive Externalities: Education
Private Benefits and Social Benefits
Government Actions in the Face of External Benefits
Checkpoint 10.2
Chapter Summary
Chapter Checkpoint
Eye on Your Life: Externalities in Your Life
Eye on the U.S. Economy: U.S. Air Pollution Trends
Eye on Climate Change: How Can We Limit Carbon Emissions?
Chapter 11. Public Goods and Common Resources
Chapter Checklist
11.1 Classifying Goods and Resources
Excludable
Rival
A Fourfold Classification
Checkpoint 11.1
11.2 Public Goods and The Free-Rider Problem
The Free-Rider Problem
The Marginal Benefit of a Public Good
The Marginal Cost of a Public Good
The Efficient Quantity of a Public Good
Private Provision: Underproduction
Public Provision: Efficient Production
Obstacles to Efficient Public Provision
Checkpoint 11.2
11.3 The Tragedy of The Commons
Unsustainable Use of a Common Resource
Inefficient Use of a Common Resource
Using the Commons Efficiently
Checkpoint 11.3
Chapter Summary
Chapter Checkpoint
Eye on the Past: Is a Lighthouse a Public Good?
Eye on Your Life: A Student’s Free-Rider Problem and a Market Solution
Eye on the U.S. Infrastructure: Should America Spend More on Transportation Infrastructure?
Eye on the Past: The Commons of England’s Middle Ages
Eye on the Global Economy: The North Atlantic Cod Tragedy of the Commons
Eye on the Global Economy: ITQs Work
Chapter 12. Private Information and Healthcare Markets
Chapter Checklist
12.1 The Lemons Problem and Its Solution
A Market for Used Cars with a Lemons Problem
A Used-Car Market with Dealers’ Warranties
Checkpoint 12.1
12.2 Information Problems in Insurance Markets
Insurance Markets
Asymmetric Information in Insurance
Screening in Insurance Markets
Separating Equilibrium with Screening
Checkpoint 12.2
12.3 The Economics of Healthcare
Healthcare Market Failure
Alternative Public Choice Solutions
A Reform Idea?
Checkpoint 12.3
Chapter Summary
Chapter Checkpoint
Eye on the Market For Used Cars: How Do You Avoid Buying a Lemon?
Eye on the U.S. Economy: Insurance in the United States
Eye on the U.S. Economy: Healthcare in the United States: A Snapshot
Eye on the Global Economy: Healthcare Expenditures and Health Outcomes
Eye on Your Life: Signaling Your Ability
Part 5: A Closer Look At Decision Makers
Chapter 13. Consumer Choice and Demand
Chapter Checklist
13.1 Consumption Possibilities
The Budget Line
A Change in the Budget
Changes in Prices
Prices and the Slope of the Budget Line
Checkpoint 13.1
13.2 Marginal Utility Theory
Total Utility
Marginal Utility
Graphing Tina’s Utility Schedules
Maximizing Total Utility
Finding an Individual Demand Curve
Checkpoint 13.2
13.3 Efficiency, Price, and Value
Consumer Efficiency
The Paradox of Value
Checkpoint 13.3
Chapter Summary
Chapter Checkpoint
Appendix: Indifference Curves
An Indifference Curve
Marginal Rate of Substitution
Consumer Equilibrium
Deriving the Demand Curve
Appendix Checkpoint
Eye on the U.S. Economy: Relative Prices on the Move
Eye on the Past: Jeremy Bentham, William Stanley Jevons, and the Birth of Utility
Eye on Song Downloads And Streaming: How Much Would You Pay for a Song?
Eye on Your Life: Do You Maximize Your Utility?
Chapter 14. Production and Cost
Chapter Checklist
14.1 Economic Cost and Profit
The Firm’s Goal
Accounting Cost and Profit
Opportunity Cost
Economic Profit
Checkpoint 14.1
Short Run and Long Run
14.2 Short-Run Production
Total Product
Marginal Product
Average Product
Checkpoint 14.2
14.3 Short-Run Cost
Total Cost
Marginal Cost
Average Cost
Why the Average Total Cost Curve Is U-Shaped
Cost Curves and Product Curves
Shifts in the Cost Curves
Checkpoint 14.3
14.4 Long-Run Cost
Plant Size and Cost
The Long-Run Average Cost Curve
Checkpoint 14.4
Chapter Summary
Chapter Checkpoint
Eye on Your Life: Your Average and Marginal Grades
Eye on Retailers’ Costs: Which Store Has the Lower Costs: Walmart or 7-Eleven?
Part 6: Prices, Profits, And Industry Performance
Chapter 15. Perfect Competition
Chapter Checklist
Market Types
Perfect Competition
Other Market Types
15.1 A Firm’s Profit-Maximizing Choices
Price Taker
Revenue Concepts
Profit-Maximizing Output
Marginal Analysis and the Supply Decision
Temporary Shutdown Decision
The Firm’s Short-Run Supply Curve
Checkpoint 15.1
15.2 Output, Price, and Profit in the Short Run
Market Supply in the Short Run
Short-Run Equilibrium in Normal Times
Short-Run Equilibrium in Good Times
Short-Run Equilibrium in Bad Times
Checkpoint 15.2
15.3 Output, Price, and Profit in the Long Run
Entry and Exit
The Effects of Exit
Change in Demand
Technological Change
Is Perfect Competition Efficient?
Is Perfect Competition Fair?
Checkpoint 15.3
Chapter Summary
Chapter Checkpoint
Eye on Record Stores: Where Have All the Record Stores Gone?
Eye on Your Life: The Perfect Competition That You Encounter
Chapter 16. Monopoly
Chapter Checklist
16.1 Monopoly and How It Arises
No Close Substitute
Barrier to Entry
Monopoly Price-Setting Strategies
Checkpoint 16.1
16.2 Single-Price Monopoly
Price and Marginal Revenue
Marginal Revenue and Elasticity
Output and Price Decision
Checkpoint 16.2
16.3 Monopoly and Competition Compared
Output and Price
Is Monopoly Efficient?
Is Monopoly Fair?
Rent Seeking
Checkpoint 16.3
16.4 Price Discrimination
Price Discrimination and Consumer Surplus
Profiting by Price Discriminating
Perfect Price Discrimination
Price Discrimination and Efficiency
Checkpoint 16.4
16.5 Monopoly Regulation
Efficient Regulation of a Natural Monopoly
Second-Best Regulation of a Natural Monopoly
Checkpoint 16.5
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: Information-Age Monopolies
Eye on the U.S. Economy: Airline Price Discrimination
Eye on Microsoft: Are Microsoft’s Prices Too High?
Eye on Your Life: Monopoly in Your Everyday Life
Chapter 17. Monopolistic Competition
Chapter Checklist
17.1 What Is Monopolistic Competition?
Describing Monopolistic Competition
Identifying Monopolistic Competition
Checkpoint 17.1
17.2 Output and Price Decisions
The Firm’s Profit-Maximizing Decision
Profit Maximizing Might Be Loss Minimizing
Long Run: Zero Economic Profit
Monopolistic Competition and Perfect Competition
Is Monopolistic Competition Efficient?
Checkpoint 17.2
17.3 Innovation and Advertising
Design and Quality Decision
Advertising
The Demand for Advertising
The Supply of Advertising
Equilibrium and Efficiency in the Advertising Market
Checkpoint 17.3
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: Examples of Monopolistic Competition
Eye on Smartphones: Which Smartphone?
Eye on Your Life: Some Selling Costs You Pay
Chapter 18. Oligopoly
Chapter Checklist
18.1 What Is Oligopoly?
Small Number of Firms
Barriers to Entry
Identifying Oligopoly
Checkpoint 18.1
18.2 The Oligopolists’ Dilemma
Monopoly Outcome
Perfect Competition Outcome
Other Possible Cartel Breakdowns
The Oligopoly Cartel Dilemma
Checkpoint 18.2
18.3 Game Theory
What Is a Game?
The Prisoners’ Dilemma
The Duopolists’ Dilemma
The Payoff Matrix
Advertising and Research Games in Oligopoly
Repeated Games
Is Oligopoly Efficient?
Checkpoint 18.3
18.4 Antitrust Law
The Antitrust Laws
Three Antitrust Policy Debates
Recent Antitrust Showcase: The United States Versus Microsoft
Merger Rules
Checkpoint 18.4
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: Examples of Oligopoly
Eye on the Global Economy: The OPEC Global Oil Cartel
Eye on Your Life: A Game You Might Play
Eye on the Wireless Oligopoly: Is Three Too Few?
Eye on the U.S. Economy: Wireless Service Merger Decisions
Part 7: Incomes And Inequality
Chapter 19. Markets for Factors of Production
Chapter Checklist
The Anatomy of Factor Markets
19.1 The Demand for a Factor of Production
Value of Marginal Product
A Firm’s Demand for Labor
A Firm’s Demand for Labor Curve
Changes in the Demand for Labor
Checkpoint 19.1
19.2 Labor Markets
The Supply of Labor
Influences on the Supply of Labor
Competitive Labor Market Equilibrium
Labor Unions
Checkpoint 19.2
19.3 Capital and Natural Resource Markets
Capital Markets
Land Markets
Nonrenewable Natural Resource Markets
Checkpoint 19.3
Chapter Summary
Chapter Checkpoint
Eye on the Coach: Why Is a Coach Worth $8.3 Million?
Eye on Your Life: Job Choice and Income Prospects
Eye on the Global Economy: Oil and Metal Prices
Chapter 20. Economic Inequality
Chapter Checklist
20.1 Measuring Economic Inequality
Lorenz Curves
Inequality over Time
Poverty
Economic Mobility
Checkpoint 20.1
20.2 How Economic Inequality Arises
Human Capital
Discrimination
Financial and Physical Capital
Entrepreneurial Ability
Personal and Family Characteristics
Checkpoint 20.2
20.3 Income Redistribution
How Governments Redistribute Income
The Scale of Income Redistribution
Why We Redistribute Income
The Major Welfare Challenge
Checkpoint 20.3
Chapter Summary
Chapter Checkpoint
Eye on the Global Economy: Global Inequality
Eye on Inequality: Who Are the Rich and the Poor?
Eye on the U.S. Economy: Does Education Pay?
Eye on the U.S. Economy: Sex and Race Earnings Differences
Eye on Your Life: What You Pay and Gain Through Redistribution
Part 8: Monitoring The Macroeconomy
Chapter 21. GDP: A Measure of Total Production and Income
Chapter Checklist
21.1 GDP, Income, and Expenditure
GDP Defined
Circular Flows in the U.S. Economy
Expenditure Equals Income
Checkpoint 21.1
21.2 Measuring U.S. GDP
The Expenditure Approach
The Income Approach
GDP and Related Measures of Production and Income
Real GDP and Nominal GDP
Calculating Real GDP
Using the Real GDP Numbers
Checkpoint 21.2
21.3 The Uses and Limitations of Real GDP
The Standard of Living over Time
Tracking the Course of the Business Cycle
The Standard of Living Among Countries
Goods and Services Omitted from GDP
Other Influences on the Standard of Living
Checkpoint 21.3
Chapter Summary
Chapter Checkpoint
Appendix: Measuring Real GDP
The Problem with Base Year Prices
Value Production in the Prices of Adjacent Years
Appendix Checkpoint
Eye on the U.S. Economy: Is a Computer Program an Intermediate Good or a Final Good?
Eye on Booms And Busts: How Do We Track Economic Booms and Busts?
Eye on Your Life: Making GDP Personal
Eye on the Global Economy: Which Country Has the Highest Standard of Living?
Chapter 22. Jobs and Unemployment
Chapter Checklist
22.1 Labor Market Indicators
Current Population Survey
Population Survey Criteria
Three Labor Market Indicators
Alternative Measures of Unemployment
Checkpoint 22.1
22.2 Labor Market Trends and Fluctuations
The Unemployment Rate
The Participation Rate
Alternative Measures of Unemployment
Checkpoint 22.2
22.3 Unemployment and Full Employment
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
“Natural” Unemployment
Unemployment and Real GDP
Checkpoint 22.3
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: The Current Population Survey
Eye on the Global Economy: Unemployment and Labor Force Participation
Eye on the U.S. Economy: How Long Does It Take to Find a Job?
Eye on Full Employment: Are We at Full Employment?
Eye on Your Life: Your Labor Market Status and Activity
Chapter 23. The CPI and the Cost of Living
Chapter Checklist
23.1 The Consumer Price Index
Reading the CPI Numbers
Constructing the CPI
The CPI Market Basket
The Monthly Price Survey
Calculating the CPI
Measuring Inflation and Deflation
The Price Level, Inflation, and Deflation in the United States
Checkpoint 23.1
23.2 The CPI and Other Price Level Measures
Sources of Bias in the CPI
The Magnitude of the Bias
Two Consequences of the CPI Bias
Alternative Consumer Price Indexes
Checkpoint 23.2
23.3 Nominal and Real Values
Dollars and Cents at Different Dates
Nominal and Real Values in Macroeconomics
Nominal GDP and Real GDP
Nominal Wage Rate and Real Wage Rate
Nominal Interest Rate and Real Interest Rate
Checkpoint 23.3
Chapter Summary
Chapter Checkpoint
Eye on the Past: 700 Years of Inflation and Deflation
Eye on the U.S. Economy: Measuring and Forecasting Inflation: The Sticky-Price CPI
Eye on the U.S. Economy: Deflating the GDP Balloon
Eye on the Past: The Nominal and Real Wage Rates of Presidents of the United States
Eye on Box Office Hits: Which Movie Really Was the Biggest Box Office Hit?
Eye on Your Life: A Student’s CPI
Part 9: The Real Economy
Chapter 24. Potential GDP and the Natural Unemployment Rate
Chapter Checklist
Macroeconomic Approaches and Pathways
The Three Main Schools of Thought
Today’s Consensus
The Road Ahead
24.1 Potential GDP
The Production Function
The Labor Market
Checkpoint 24.1
24.2 The Natural Unemployment Rate
Job Search
Job Rationing
Checkpoint 24.2
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: The Lucas Wedge and the Okun Gap
Eye on the Global Economy: Potential GDP in the United States and the European Union
Eye on Potential GDP: Why Do Americans Earn More and Produce More Than Europeans?
Eye on the Past: The Natural Unemployment Rate over Seven Decades
Eye on the Global Economy: Unemployment Benefits and the Natural Unemployment Rate
Eye on the U.S. Economy: The Federal Minimum Wage
Eye on Your Life: Natural Unemployment
Chapter 25. Economic Growth
Chapter Checklist
25.1 The Basics of Economic Growth
Calculating Growth Rates
The Magic of Sustained Growth
Checkpoint 25.1
25.2 Labor Productivity Growth
Labor Productivity
Saving and Investment in Physical Capital
Expansion of Human Capital and Discovery of New Technologies
Combined Influences Bring Labor Productivity Growth
Checkpoint 25.2
25.3 Causes and Effects of Economic Growth
Old Growth Theory
New Growth Theory
Economic Growth and the Distribution of Income
Checkpoint 25.3
25.4 Achieving Faster Growth
Preconditions for Economic Growth
Policies to Achieve Faster Growth
How Much Difference Can Policy Make?
Checkpoint 25.4
Chapter Summary
Chapter Checkpoint
Eye on the Past: How Fast Has Real GDP per Person Grown?
Eye on the U.S. Economy: U.S. Growth Is Slowing
Eye on the U.S. Economy: U.S. Labor Productivity Growth Since 1960
Eye on the U.S. Economy: The Changing Shares in the Gains from Economic Growth
Eye on Your Life: How You Influence and Are Influenced by Economic Growth
Eye on Rich And Poor Nations: Why Are Some Nations Rich and Others Poor?
Chapter 26. Finance, Saving, and Investment
Chapter Checklist
26.1 Financial Markets and Financial Institutions
Some Finance Definitions
Markets for Financial Capital
Financial Institutions
Interest Rates and Bond and Stock Prices
The Economic Benefits of Financial Markets and Institutions
Checkpoint 26.1
26.2 The Loanable Funds Market
Flows in the Loanable Funds Market
The Demand for Loanable Funds
The Supply of Loanable Funds
Equilibrium in the Loanable Funds Market
Changes in Demand and Supply
Checkpoint 26.2
26.3 Government in Loanable Funds Market
A Government Budget Surplus
A Government Budget Deficit
Checkpoint 26.3
Appendix: Present Value
Comparing Current and Future Dollars
Compound Interest
Present Value of a Sequence of Future Sums
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: Interest Rate Patterns
Eye on the U.S. Economy: The Scale of Lending and Borrowing
Eye on the U.S. Economy: Cryptocurrencies and Blockchain Technology
Eye on Your Life: Your Participation in the Loanable Funds Market
Eye on Fintech: What Is Fintech and How Is Technology Changing Financial Markets?
Part 10: The Money Economy
Chapter 27. The Monetary System
Chapter Checklist
27.1 What Is Money?
Definition of Money
The Functions of Money
Money Today
Official Measures of Money: M1 and M2
Checks, Credit Cards, Debit Cards, and Mobile Wallets
An Embryonic New Money: E-Cash
Checkpoint 27.1
27.2 The Banking System
Commercial Banks
Thrift Institutions
Money Market Funds
Checkpoint 27.2
27.3 The Federal Reserve System
The Structure of the Federal Reserve
The Fed’s Policy Tools
How the Fed’s Policy Tools Work
Checkpoint 27.3
27.4 Regulating the Quantity of Money
Creating Deposits by Making Loans
How Open Market Operations Change the Monetary Base
The Multiplier Effect of an Open Market Operation
The Money Multiplier
Checkpoint 27.4
Chapter Summary
Chapter Checkpoint
Eye on the Past: The “Invention” of Banking
Eye on the U.S. Economy: Commercial Banks Under Stress in the Financial Crisis
Eye on Your Life: Money and Your Role in Its Creation
Eye on Creating Money: How Does the Fed Create Money and Regulate Its Quantity?
Chapter 28. Money, Interest, and Inflation
Chapter Checklist
Where We Are and Where We’re Heading
The Real Economy
The Money Economy
Real and Money Interactions and Policy
28.1 Money and the Interest Rate
The Demand for Money
Changes in the Demand for Money
The Supply of Money
The Nominal Interest Rate
Changing the Interest Rate
Checkpoint 28.1
28.2 Money, the Price Level, and Inflation
The Money Market in the Long Run
A Change in the Quantity of Money
The Price Level in a Baby-Sitting Club
The Quantity Theory of Money
Inflation and the Quantity Theory of Money
Hyperinflation
Checkpoint 28.2
28.3 The Cost of Inflation
Tax Costs
Shoe-Leather Costs
Confusion Costs
Uncertainty Costs
How Big Is the Cost of Inflation?
Checkpoint 28.3
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: Credit Cards and Money
Eye on Your Life: Money Holding and Fed Watching
Eye on Inflation: What Causes Inflation?
Eye on the Past: Hyperinflation in Germany in the 1920s
Part 11: Economic Fluctuations
Chapter 29. Aggregate Supply and Aggregate Demand
Chapter Checklist
29.1 Aggregate Supply
Aggregate Supply Basics
Changes in Aggregate Supply
Checkpoint 29.1
29.2 Aggregate Demand
Aggregate Demand Basics
Changes in Aggregate Demand
The Aggregate Demand Multiplier
Checkpoint 29.2
29.3 Explaining Economic Trends and Fluctuations
Macroeconomic Equilibrium
Three Types of Macroeconomic Equilibrium
Economic Growth and Inflation Trends
The Business Cycle
Inflation Cycles
Deflation and the Great Depression
Checkpoint 29.3
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: U.S. Economic Growth, Inflation, and the Business Cycle
Eye on Your Life: Using the AS-AD Model
Eye on Recession: What Causes a Recession?
Chapter 30. Aggregate Expenditure Multiplier
Chapter Checklist
30.1 Expenditure Plans and Real GDP
The Consumption Function
Imports and Real GDP
Checkpoint 30.1
30.2 Equilibrium Expenditure
Induced Expenditure and Autonomous Expenditure
Aggregate Planned Expenditure and Real GDP
Equilibrium Expenditure
Convergence to Equilibrium
Checkpoint 30.2
30.3 Expenditure Multipliers
The Basic Idea of the Multiplier
The Size of the Multiplier
The Multiplier and the MPC
The Multiplier, Imports, and Income Taxes
Business-Cycle Turning Points
Checkpoint 30.3
30.4 The AD Curve and Equilibrium Expenditure
Deriving the AD Curve from Equilibrium Expenditure
Checkpoint 30.4
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: The U.S. Consumption Function
Eye on the Past: Say’s Law and Keynes’ Principle of Effective Demand
Eye on Your Life: Looking for Multipliers
Eye on the Multiplier: How Big Is the Government Expenditure Multiplier?
Chapter 31. The Short-Run Policy Tradeoff
Chapter Checklist
31.1 The Short-Run Phillips Curve
Aggregate Supply and the Short-Run Phillips Curve
Aggregate Demand Fluctuations
Why Bother with the Phillips Curve?
Checkpoint 31.1
31.2 Short-Run and Long-Run Phillips Curves
The Long-Run Phillips Curve
Expected Inflation
The Natural Rate Hypothesis
Changes in the Natural Unemployment Rate
Have Changes in the Natural Unemployment Rate Changed the Tradeoff?
Checkpoint 31.2
31.3 Influencing Inflation and Unemployment
Influencing the Expected Inflation Rate
Targeting the Unemployment Rate
Checkpoint 31.3
Chapter Summary
Chapter Checkpoint
Eye on the Global Economy: Inflation and Unemployment
Eye on the Past: The U.S. Phillips Curve
Eye on the Past: A Live Test of the Natural Rate Hypothesis
Eye on the Tradeoff: Can We Have Low Unemployment and Low Inflation?
Eye on Your Life: The Short-Run Tradeoff in Your Life
Part 12: Macroeconomic Policy
Chapter 32. Fiscal Policy
Chapter Checklist
32.1 The Federal Budget
The Institutions and Laws
Budget Balance and Debt
The Federal Budget in Fiscal 2020
A Fiscal Policy Challenge
Generational Accounting
Checkpoint 32.1
32.2 Fiscal Stimulus
Fiscal Policy and Aggregate Demand
Automatic Fiscal Policy
Cyclical and Structural Budget Balances
Discretionary Fiscal Policy
A Successful Fiscal Stimulus
Limitations of Discretionary Fiscal Policy
Checkpoint 32.2
32.3 The Supply Side: Potential GDP and Growth
Full Employment and Potential GDP
Fiscal Policy, Employment, and Potential GDP
Fiscal Policy and Potential GDP: A Graphical Analysis
Taxes, Deficits, and Economic Growth
The Supply-Side Debate
Long-Run Fiscal Policy Effects
Checkpoint 32.3
Chapter Summary
Chapter Checkpoint
Eye on the Global Economy: The U.S. Budget in Global Perspective
Eye on the Past: Federal Tax Revenues, Outlays, Deficits, and Debt
Eye on the U.S. Economy Fiscal and Generational Imbalances
Eye on the U.S. Economy: The U.S. Structural and Cyclical Budget Balances
Eye on Fiscal Stimulus: Can Fiscal Stimulus End a Recession?
Eye on the Global Economy: Some Real-World Tax Wedges
Eye on Your Life Your Views on Fiscal Policy and How Fiscal Policy Affects You
Chapter 33. Monetary Policy
Chapter Checklist
33.1 How the Fed Conducts Monetary Policy
Monetary Policy Objectives
Operational “Maximum Employment” Goal
Operational “Stable Prices” Goal
Responsibility for Monetary Policy
Policy Instrument
Hitting the Federal Funds Rate Target
Restoring Financial Stability in a Financial Crisis
Checkpoint 33.1
33.2 Monetary Policy Transmission
Quick Overview
Interest Rate Changes
Exchange Rate Changes
Money and Bank Loans
The Long-Term Real Interest Rate
Expenditure Plans
The Fed Fights Recession
The Fed Fights Inflation
Loose Links and Long and Variable Lags
A Final Reality Check
Checkpoint 33.2
33.3 Alternative Monetary Policy Strategies
An Interest Rate Rule
A Monetary Base Rule
Inflation Targeting
Money Targeting Rule
Checkpoint 33.3
Chapter Summary
Chapter Checkpoint
Eye on the FED In A Crisis: Did the Fed Save Us from Another Great Depression?
Eye on the U.S. Economy: The Fed’s Decisions Versus Two Rules
Eye on the Global Economy: Inflation Targeting Around the World
Eye on Your Life: Your Views on Monetary Policy and How Monetary Policy Affects You
Chapter 34. International Finance
Chapter Checklist
34.1 Financing International Trade
Balance of Payments Accounts
Borrowers and Lenders, Debtors and Creditors
Current Account Balance
Checkpoint 34.1
34.2 The Exchange Rate
Demand in the Foreign Exchange Market
The Law of Demand for Foreign Exchange
Changes in the Demand for Dollars
Supply in the Foreign Exchange Market
The Law of Supply of Foreign Exchange
Changes in the Supply of Dollars
Market Equilibrium
Exchange Rate Expectations
Monetary Policy and the Exchange Rate
Pegging the Exchange Rate
The People’s Bank of China in the Foreign Exchange Market
Checkpoint 34.2
Chapter Summary
Chapter Checkpoint
Eye on the U.S. Economy: The U.S. Balance of Payments
Eye on the Global Economy: Current Account Balances Around the World
Eye on the Dollar: Why Does Our Dollar Fluctuate?
Eye on the Global Economy: Purchasing Power Parity
Eye on the Global Economy: The Managed Yuan
Eye on Your Life: Your Foreign Exchange Transactions
Glossary
Index
Credits