CART

(0) items

Essentials of Economics,9780030292712
This item qualifies for
FREE SHIPPING!
FREE SHIPPING OVER $59!

Your order must be $59 or more, you must select US Postal Service Shipping as your shipping preference, and the "Group my items into as few shipments as possible" option when you place your order.

Bulk sales, PO's, Marketplace Items, eBooks, Apparel, and DVDs not included.

Essentials of Economics

by
Edition:
2nd
ISBN13:

9780030292712

ISBN10:
0030292719
Format:
Paperback
Pub. Date:
6/8/2000
Publisher(s):
South-Western College Pub

Questions About This Book?

What version or edition is this?
This is the 2nd edition with a publication date of 6/8/2000.
What is included with this book?
  • The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any CDs, lab manuals, study guides, etc.

Related Products


  • Essentials of Economics
    Essentials of Economics
  • Essentials of Economics
    Essentials of Economics
  • Essentials Of Economics
    Essentials Of Economics
  • Essentials Of Economics
    Essentials Of Economics
  • Essentials of Economics (with Xtra!)
    Essentials of Economics (with Xtra!)
  • Essentials of Economics, 6th Edition
    Essentials of Economics, 6th Edition
  • Study Guide for Mankiw's Essentials of Economics, 6th
    Study Guide for Mankiw's Essentials of Economics, 6th
  • Study Guide for Mankiw's Essentials of Economics, 7th
    Study Guide for Mankiw's Essentials of Economics, 7th





Summary

With an easy-to-understand writing style, ESSENTIALS OF ECONOMICS is the most popular and widely used economics textbook in college Economics classes. Author Greg Mankiw has created a textbook that's accessible to everyone, particularly students encountering economics for the first time -- emphasizing real-life scenarios and engaging facts on the economy and its fundamental principles.

Table of Contents

Preface to the Instructor xi
Preface to the Student xxix
PART ONE INTRODUCTION 1(62)
Ten Principles of Economics
3(16)
How People Make Decisions
4(4)
People Face Tradeoffs
4(1)
The Cost of Something Is What You Give Up to Get It
5(1)
Rational People Think at the Margin
6(1)
People Respond to Incentives
7(1)
How People Interact
8(4)
Trade Can Make Everyone Better Off
8(1)
Markets Are Usually a Good Way to Organize Economic Activity
9(1)
FYI: Adam Smith and the Invisible Hand
10(1)
Governments Can Sometimes Improve Market Outcomes
11(1)
How the Economy as a Whole Works
12(3)
A Country's Standard of Living Depends on Its Ability to Produce Goods and Services
12(1)
Prices Rise When the Government Prints Too Much Money
13(1)
Society Faces a Short-Run Tradeoff between Inflation and Unemployment
14(1)
Conclusion
15(1)
Summary
16(1)
Key Concepts
16(1)
Questions for Review
16(1)
Problems and Applications
16(3)
Thinking Like an Economist
19(28)
The Economist as Scientist
20(8)
The Scientific Method: Observation, Theory, and More Observation
21(1)
The Role of Assumptions
22(1)
Economic Models
22(1)
Our First Model: The Circular-Flow Diagram
23(2)
Our Second Model: The Production Possibilities Frontier
25(2)
Microeconomics and Macroeconomics
27(1)
The Economist as Policy Adviser
28(3)
Positive versus Normative Analysis
28(1)
Economists in Washington
29(2)
Why Economists Disagree
31(2)
Differences in Scientific Judgments
31(1)
Differences in Values
32(1)
Perception versus Reality
32(1)
Let's Get Going
33(1)
Summary
34(1)
Key Concepts
34(1)
Questions for Review
34(1)
Problems and Applications
35(1)
Appendix: Graphing---A Brief Review
36(11)
Graphs of Single Variable
36(1)
Graphs of Two Variables: The Coordinate System
37(1)
Curves in the Coordinate System
38(3)
Slope
41(1)
Cause and Effect
42(1)
Omitted Variables
43(1)
Reverse Causality
44(3)
Interdependence and the Gains from Trade
47(16)
A Parable for the Modern Economy
48(4)
Production Possibilities
48(2)
Specialization and Trade
50(2)
The Principle of Comparative Advantage
52(3)
Absolute Advantage
53(1)
Opportunity Cost and Comparative Advantage
53(1)
Comparative Advantage and Trade
54(1)
FYI: The Legacy of Adam Smith and David Ricardo
55(1)
Applications of Comparative Advantage
55(3)
Should Tiger Woods Mow His Own Lawn?
56(1)
In the News: Who Has a Comparative Advantage in Producing Lamb?---Lamb Tariffs Fleece U.S. Consumers
56(1)
Should the United States Trade with Other Countries?
57(1)
Conclusion
58(1)
Summary
59(1)
Key Concepts
59(1)
Questions for Review
59(1)
Problems and Applications
59(4)
PART TWO SUPPLY AND DEMAND I: HOW MARKETS WORK 63(76)
The Market Forces of Supply and Demand
65(28)
Markets and Competition
66(1)
Competitive Markets
66(1)
Competition: Perfect and Otherwise
66(1)
Demand
67(8)
What Determines the Quantity and Individual Demands?
67(1)
Price
68(1)
Income
68(1)
Prices of Related Goods
68(1)
Tastes
68(1)
Expectations
68(1)
The Demand Schedule and the Demand Curve
69(1)
Ceteris Paribus
70(1)
Market Demand versus Individual Demand
70(2)
Shifts in the Demand Curve
72(1)
Case Study: Two Ways to Reduce the Quantity of Smoking Demanded
73(2)
Supply
75(3)
What Determines the Quantity an Individual Supplies?
75(1)
Price
75(1)
Input Prices
75(1)
Technology
75(1)
Expectations
75(1)
The Supply Schedule and the Supply Curve
76(1)
Market Supply versus Individual Supply
77(1)
Shifts in the Supply Curve
77(1)
Supply and Demand Together
78(10)
Equilibrium
78(3)
Three Steps to Analyzing Changes in Equilibrium
81(2)
Example: A Change in Demand
83(1)
Shifts in Curves versus Movements along Curves
83(1)
Example: A Change in Supply
84(1)
Example: A Change in Both Supply and Demand
85(1)
In the News: Mother Nature Shits the Supply Curve---4-Day Cold Spell Slams California: Crops Devastated; Price of Citrus to Rise
86(1)
Summary
86(2)
Conclusion: How Prices Allocate Resources
88(1)
Summary
89(1)
Key Concepts
90(1)
Questions for Review
90(1)
Problems and Applications
90(3)
Elasticity and Its Application
93(24)
The Elasticity of Demand
94(10)
The Price Elasticity of Demand and Its Determinants
94(1)
Necessites versus Luxuries
94(1)
Availability of Close Substitutes
95(1)
Definition of the Market
95(1)
Time Horizon
95(1)
Computing the Price Elasticity of Demand
95(1)
the Midpoint Method: A Better Way to Calculate Percentage Changes and Elasticities
96(2)
The Variety of Demand Curves
98(1)
Total Revenue and the Price Elasticity of Demand
98(3)
Elasticity and Total Revenue along a Linear Demand Curve
101(1)
Case Study: Pricing Admission to a Museum
102(1)
Other Demand Elasticities
102(1)
The Income Elasticity of Demand
102(1)
In the News: On the Road with Elasticity---For Whom the Both Tolls, Price Really Does Matter
103(1)
The Cross-Price Elasticity of Demand
104(1)
The Elasticity of Supply
104(4)
The Price Elasticity of Supply and Its Determinants
104(1)
Computing the Price Elasticity of Supply
105(1)
The Variety of Supply Curves
105(3)
Three Applications of Supply, Demand, and Elasticity
108(5)
Can Good News for Farming Be Bad News for Farmers?
108(2)
Why Did OPEC Fail to Keep the Price of Oil High?
110(2)
Does Drug Interdiction Increase or Decrease Drug-Related Crime?
112(1)
Conclusion
113(1)
Summary
114(1)
Key Concepts
114(1)
Questions for Review
114(1)
Problems and Applications
115(2)
Supply, Demand, and Government Policies
117(22)
Controls on Prices
118(10)
How Price Ceilings Affect Market Outcomes
118(2)
Case Study: Lines at the Gas Pump
120(1)
In the News: Does a Drought Need to Cause a Water Shortage?---Trickle-Down Economics
121(1)
Case Study: Rent Control in the Short Run and Long Run
122(1)
How Price Floors Affect Market Outcomes
123(1)
In the News: Rent Control in New York---Threat to End Rent Control Stirs Up NYC
124(2)
Case Study: The Minimum Wage
126(1)
Evaluating Price Controls
127(1)
Taxes
128(7)
How Taxes on Buyers Affect Market Outcomes
129(1)
How Taxes on Sellers Affect Market Outcomes
130(1)
Case Study: Can Congress Distribute the Burden of a Payroll Tax?
131(2)
Elasticity and Tax Incidence
133(1)
Case Study: Who Pays the Luxury Tax?
134(1)
Conclusion
135(1)
Summary
135(1)
Key Concepts
136(1)
Questions for Review
136(1)
Problems and Applications
136(3)
PART THREE SUPPLY AND DEMAND II: MARKETS AND WELFARE 139(64)
Consumers, Producers, and The Efficiency of Markets
141(20)
Consumer Surplus
142(5)
Willingness to Pay
142(1)
Using the Demand Curve to Measure Consumer Surplus
143(3)
How a Lower Price Raises Consumer Surplus
146(1)
What Does Consumer Surplus Measures?
147(1)
Producer Surplus
147(5)
Cost and the Willingness to Sell
148(1)
Using the Supply Curve to Measure Producer Surplus
149(2)
How a Higher Price Raises Producer Surplus
151(1)
Market Efficiency
152(3)
The Benevolent Social Planner
152(1)
Evaluating the Market Equilibrium
153(3)
In the News: Ticket Scalping---Tickets? Supply Meets Demand on Sidewalk
156
Conclusion: Market Efficiency and Market Failure
155(3)
Summary
158(1)
Key Concepts
158(1)
Questions for Review
158(1)
Problems and Applications
158(3)
Application: The Costs of Taxation
161(18)
The Deadweight Loss of Taxation
162(4)
How A Tax Affects Market Participants
163(1)
Welfare without a Tax
164(1)
Welfare with a Tax
165(1)
Changes in Welfare
165(1)
Deadweight Losses and the Gains from Trade
165(1)
The Determinants of the Deadweight Loss
166(4)
Case Study: The Deadweight Loss Debate
168(2)
FYI: Henry George and the Land Tax
170(1)
Deadweight Loss and Tax Revenue as Taxes Vary
170(5)
Case Study: The Laffer Curve and Supply-Side Economics
172(2)
In the News: How to Be Master of the Universe---Supply-Side Is a Winning Strategy
174(1)
Conclusion
175(1)
Summary
175(1)
Key Concepts
176(1)
Questions for Review
176(1)
Problems and Applications
176(3)
Application: International Trade
179(24)
The Determinants of Trade
180(2)
The Equilibrium without Trade
180(1)
The World Price and Comparative Advantage
181(1)
The Winners and Losers from Trade
182(10)
The Gains and Losses of an Exporting Country
182(2)
The Gains and Losses of an Importing Country
184(2)
The Effects of a Tariff
186(1)
In the News: Life in Isoland---Clinton Warns U.S. Will Fight Cheap Imports
187(2)
The Effects of an Import Quota
189(2)
The Lessons for Trade Policy
191(1)
The Arguments for Restricting Trade
192(5)
FYI: Other Benefits of International Trade
193(1)
The Jobs Argument
193(1)
The National-Security Argument
194(1)
The Infant-Industry Argument
194(1)
The Unfair-Competition Argument
195(1)
The Protection-as-a-Bargaining-Chip Argument
195(1)
Case Study: Trade Agreements
195(1)
In the News: A Chicken Invasion---U.S. Chicken in Every Pot? Nyet! Russians Cry Foul
196(1)
Conclusion
197(3)
In the News: The Case for Unilateral Disarmament in the Trade Wars---Free Trade without Treaties
198(2)
Summary
200(1)
Key Concepts
200(1)
Questions for Review
200(1)
Problems and Applications
201(2)
PART FOUR THE ECONOMICS OF THE PUBLIC SECTOR 203(40)
Externalities
205(20)
Externalities and Market Inefficiency
207(5)
Welfare Economics: A Recap
207(1)
Negative Externalities in Production
208(1)
Positive Externalities in Production
209(1)
Case Study: The Debate over Technology Policy
210(1)
Externalities in Consumption
211(1)
Private Solutions to Externalities
212(3)
The Types of Private Solutions
212(1)
The Coase Theorem
213(1)
Why Private Solutions Do Not Always Work
214(1)
Public Policies toward Externalities
215(5)
Regulation
215(1)
Pigovian Taxes and Subsidies
216(1)
Case Study: Why is Gasoline Taxed So Heavily?
217(1)
Tradable Pollution Permits
218(1)
Objectives to the Economic Analysis of Pollution
219(2)
In the News: Children as Externalities---Mum's the Word: When Children Should Be Screened and Not Head
221
Conclusion
220(2)
Summary
222(1)
Key Concepts
222(1)
Questions for Review
222(1)
Problems and Applications
222(3)
Public Goods and Common Resources
225(18)
The Different Kinds of Goods
226(1)
Public Goods
227(6)
The Free-Rider Problem
228(1)
Some Important Public Goods
228(1)
National Defense
228(1)
Basic Research
228(1)
Figthing Poverty
229(1)
Case Study: Are Lighthouses Public Goods?
230(1)
The Difficult Job of Cost-Benefit Analysis
231(1)
Case Study: How Much Is a Life Worth?
231(2)
In the News: Existence Value---They Exist. Therefore They Are. But, Do You Care?
233(1)
Common Resources
233(6)
The Tragedy of the Commons
234(1)
Som Important Common Resources
235(1)
Clean Air and Water
235(1)
Oil Pools
235(1)
Congested Roads
235(1)
In the News: The Singapore Solution---Economics of Road Pricing
236(1)
Fish, Whales, and Other Wildlife
237(1)
In the News: Should Yellowstone Charge as Much as Disney World?---Save the Parks, and Make a Profit
238(1)
Case Study: Why the Cow Is Not Extinct
238(1)
Conclusion: The Importance of Property Rights
239(1)
Summary
240(1)
Key Concepts
240(1)
Questions for Review
240(1)
Problems and Applications
241(2)
PART FIVE FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRY 243(82)
The Costs of Production
245(22)
What Are Costs?
246(3)
Total Revenue, Total Cost, and Profit
246(1)
Costs as Opportunity Costs
247(1)
The Cost of Capital as an Opportunity Cost
247(1)
Economic Profit versus Accounting Profit
248(1)
Production and Costs
249(3)
The Production Function
249(2)
From the Production Function to the Total-Cost Curve
251(1)
The Various Measures of Cost
252(7)
Fixed and Variable Costs
253(1)
Average and Marginal Cost
254(1)
Cost Curves and Their Shapes
255(1)
Rising Marginal Cost
255(1)
U-Sjhaped Average Total Cost
256(1)
The Relationship between Marginal Cost and Average Total Cost
256(1)
Typical Cost Curves
256(3)
Costs in the Short Run and in the Long Run
259(2)
The Relationship Between Short-Run and Long-Run Average Total Cost
259(1)
Economies and Diseconomies of Scale
260(1)
FYI: Lessons from a Pin Factory
261(1)
Conclusion
261(1)
Summary
262(1)
Key Concepts
263(1)
Questions for Review
263(1)
Problems and Applications
263(4)
Firms in Competitive Markets
267(24)
What Is a Competitive Market?
268(2)
The Meaning of Competition
268(1)
The Revenue of a Competitive Firm
269(1)
Profit Maximization and the Competitive Firm's Supply Curve
270(10)
A Simple Example of Profit Maximization
270(1)
The Marginal-Cost Curve and the Firm's Supply Decision
271(2)
The Firm's Short-Run Decision to Shut Down
273(1)
Spilt Milk and Other Sunk Costs
274(2)
Case Study: Near-Empty Restaurants and Off-Season Miniature Golf
276(1)
The Firm's Long-Run Decision to Exit or Enter a Market
276(1)
Measuring Profit in Our Graph for the Competitive Firm
277(1)
In the News: Entry and Exit in Transition Economies---Russia Is Not Poland, and That's Too Bad
278(2)
Supply Curve in a Competitive Market
280(7)
The Short Run: Market Supply with a Fixed Number of Firms
280(1)
The Long Run: Market Supply with Entry and Exit
281(2)
Why Do Competitive Firms Stay in Business If They Make Zero Profit?
283(1)
A Shift in Demand in the Short Run and Long Run
284(1)
Why the Long-Run Supply Curve Might Slope Upward
284(2)
In the News: Entry or Overinvestment?---In Some Industries, Executives Foresee Tough Times Ahead; A Key Culprit: High Profits
286(1)
Conclusion: Behind the Supply Curve
287(1)
Summary
287(1)
Key Concepts
288(1)
Questions for Review
288(1)
Problems and Applications
288(3)
Monopoly
291(34)
Why Monopolies Arise
292(4)
Monopoly Resources
293(1)
Case Study: The DeBeers Diamond Monopoly
293(1)
Government-Created Monopolies
294(1)
Natural Monopolies
294(2)
How Monopolies Make Production and Pricing Decisions
296(7)
Monopoly versus Competition
296(1)
A Monopoly's Revenue
296(3)
Profit Maximization
299(2)
FYI: Why a Monopoly Does Not Have a Supply Curve
301(1)
A Monopoly's Profit
301(1)
Case Study: Monopoly Drugs versus Generic Drugs
302(1)
The Welfare Cost of Monopoly
303(3)
The Deadweight Loss
304(2)
The Monopoly's Profit: A Social Cost?
306(1)
Public Policy toward Monopolies
306(6)
Increasing Competition with Antitrust Laws
307(1)
Regulation
308(1)
Public Ownership
309(1)
In the News: Public Transport and Private Enterprise---Man with a Van
310(1)
Doing Nothing
310(2)
Price Discrimination
312(7)
A Parable about Pricing
312(1)
The Moral of the Story
313(1)
The Analytics of Price Discrimination
314(1)
Examples of Price Discrimination
315(1)
Movie Tickets
315(1)
In the News: The Best Monopolist---Let's Play Monopoly
316(2)
Airline Prices
318(1)
Discount Coupons
318(1)
Financial Aid
318(1)
Quantity Discounts
318(1)
Conclusion: The Prevalence of Monopoly
319(1)
Summary
319(1)
Key Concepts
320(1)
Questions for Review
320(1)
Problems and Applications
320(5)
PART SIX THE DATA OF MACROECONOMICS 325(36)
Measuring a Nation's Income
327(18)
The Economy's Income and Expenditure
328(2)
The Measurement of Gross Domestic Product
330(3)
``GDP Is the Market Value...''
330(1)
``Of All...''
330(1)
``Final...''
331(1)
``Goods and Services...''
331(1)
``Produced...''
331(1)
``Within a Country...''
331(1)
FYI: Other Measures of Income
332(1)
``...In a Given Period of Time.''
332(1)
The Components of GDP
333(1)
Real versus Nominal GDP
334(4)
A Numerical Example
335(1)
The GDP Deflator
336(1)
Case Study: Real GDP over Recent History
337(1)
GDP and Economic Well-Being
338(4)
In the News: GDP Lightens Up---From Greenspan, a (Truly) Weighty Idea
339(1)
Case Study: International Differences in GDP and the Quality of Life
340(1)
In the News: Hidden GDP---The Russian Economy: Notes from Underground
341(1)
Conclusion
342(1)
Summary
342(1)
Key Concepts
343(1)
Questions for Review
343(1)
Problems and Applications
343(2)
Measuring the Cost of Living
345(16)
The Consumer Price Index
346(8)
How to Consumer Price Index Is Calculated
346(2)
FYI: What is in the CPI's Basket?
348(1)
Problems in Measuring the Cost of Living
349(1)
In the News: Shopping for the CPI---Is the CPI Accurate? Ask the Sleuths Who Get the Numbers
350(2)
In the News: A CPI for Senior Citizens---Prices That Don't Fit the Profile: Is Index Mismatched to Retirees' Reality?
352(1)
The GDP Deflator versus the Consumer Price Index
353(1)
Correctomg Economic Variables for the Effects of Inflation
354(4)
Dollar Figures from Different Times
354(1)
Case Study: Mr. Index Goes to Hollywood
355(1)
Imdexatopm
355(1)
Real and Nominal Interest Rates
356(2)
Conclusion
358(1)
Summary
358(1)
Key Concepts
359(1)
Questions for Review
359(1)
Problems and Applications
359(2)
PART SEVEN THE REAL ECONOMY IN THE LONG RUN 361(78)
Production and Growth
364(23)
Economic Growth around the World
364(2)
FYI: The Magic of Compounding and the Rule of 70
366(1)
Productivity: Its Role and Determinants
366(5)
Why Productivity Is So Important
367(1)
How Productivity Is Determined
367(1)
Physical Capital
368(1)
Human Capital
368(1)
Natural Resources
368(1)
Technological Knowledge
369(1)
FYI: The Production Function
369(1)
Case Study: The Natural Resources a Limit to Growth?
370(1)
Economic Growth and Public Policy
371(10)
The Important of Saving and Investment
371(2)
Diminishing Returns and the Catch-Up Effect
373(1)
Investment from Abroad
374(1)
Education
375(1)
Property Rights and Political Stability
375(1)
Free Trade
376(1)
The Control of Population Growth
377(1)
FYI: Thomas Malthus on Population Growth
378(1)
Research and Development
379(1)
Case Study: The Productivity Slowdown
379(2)
Conclusion: The Importance of Long-Run Growth
381(3)
In the News: A Solution to Africa's Problems---Growth in Africa: It Can Be Done
382(2)
Summary
384(1)
Key Concepts
384(1)
Questions for Review
384(1)
Problems and Applications
384(3)
Saving, Investment, and The Financial System
387(26)
Financial Institutions in the U.S. Economy
388(5)
Financial Markets
389(1)
The Bond Market
389(1)
The Stock Market
390(1)
Financial Intermediaries
390(1)
FYI: How to Read the Newspaper's Stock Tables
391(1)
Banks
391(1)
Mutual Funds
392(1)
Summing Up
393(1)
Saving and Investment in the National Income Accounts
393(5)
In the News: The Stock Market Boom of the 1990s---Are Stocks Overvalued? Not a Chance
394(1)
Some Important Identities
394(3)
The Meaning of Saving and Investment
397(1)
The Market for Loanable Funds
398(10)
Supply and Demand for Loanable Funds
398(3)
FYI: Present Value
401(1)
Policy 1: Taxes and Saving
402(1)
Policy 2: Taxes and Investment
403(1)
Policy 3: Government Budget Deficits and Surpluses
404(2)
Case Study: The Debate over the Budget Surplus
406(1)
Case Study: The History of U.S. Government Debt
407(1)
Conclusion
408(1)
Summary
409(1)
Key Concepts
409(1)
Questions for Review
409(1)
Problems and Applications
410(3)
Unemployment and Its Natural Rate
413(26)
Identifying Unemployment
414(7)
How Is Unemployment Measures?
414(4)
Case Study: Labor-Force Participation of Men and Women in the U.S. Economy
418(1)
Does the Unemployment Rate Measure What We Want It To?
419(1)
How Long Are the Unemployed without Work?
420(1)
Why Are There Always Some People Unemployed?
421(1)
Job Search
421(4)
Why Some Frictional Unemployment Is Inevitable
422(1)
Public Policy and Job Search
422(1)
Unemployment Insurance
423(1)
In the News: German Unemployment---For Germany, Benefits Are Also a Burden
424(1)
Minimum-Wage Laws
425(1)
Unions and Collective Bargaining
426(4)
The Economics of Unions
427(1)
Are Unions Good or Bad for the Economy?
428(1)
In the News: Should You Join a Union?---On Payday, Union Jobs Stack Up Very Well
429(1)
The Theory of Efficiency Wages
430(5)
Worker Health
431(1)
Worker Turnover
431(1)
Worker Effort
431(1)
Worker Quality
432(1)
FYI: The Economics of Asymmetric Information
433(1)
Case Study: Henry Ford and the Very Generous $5-a-Day Wage
434(1)
Conclusion
435(1)
Summary
436(1)
Key Concepts
436(1)
Questions for Review
436(1)
Problems and Applications
437(2)
PART EIGHT MONEY AND PRICES IN THE LONG RUN 439(50)
The Meaning of Money
442(19)
The Functions of Money
443(4)
The Kinds of Money
443(1)
In the News: Money on the Island of Yap---Fixed Assets, or Why a Loan in Yap Is Hard to Roll Over
444(1)
Money in the U.S. Economy
445(1)
FYI: Credit Cards, Debit Cards, and Money
446(1)
Case Study: Where Is All the Currency?
446(1)
The Federal Reserve System
447(2)
The Fed's Organization
448(1)
The Federal Open Market Committee
448(1)
Banks and the Money Supply
449(8)
The Simple Case of 100-Percent-Reserve Banking
450(1)
Money Creation with Fractional-Reserve Banking
451(1)
The Money Multiplier
452(1)
The Fed's Tools of Monetary Control
453(1)
Open-Market Operations
454(1)
Reserve Requirements
454(1)
The Discount Rate
454(1)
Problems in Controlling the Money Supply
455(1)
Case Study: Bank Runs and the Money Supply
456(1)
Conclusion
457(1)
Summary
457(1)
Key Concepts
458(1)
Questions for Review
458(1)
Problems and Applications
458(3)
Money Growth and Inflation
461(28)
The Classical Theory of Inflation
463(12)
The Level of Prices and the Value of Money
463(1)
Money Supply, Money Demand, and Monetary Equilibrium
464(2)
The Effect of a Monetary Injection
466(1)
A Brief Look at the Adjustment Process
466(1)
The Classical Dichotomy and Monetary Neutrality
467(2)
Velocity and the Quantity Equation
469(2)
Case Study: Money and Prices during Four Hyperinflations
471(1)
The Inflation Tax
472(1)
In the News: Russia Turns to the Inflation Tax---Russia's New Leaders Plan to Pay Debts by Printing Money
473(1)
The Fisher Effect
473(2)
The Costs of Inflation
475(8)
A Fall in Purchasing Power? The Inflation Fallacy
475(1)
Shoeleather Costs
476(1)
In the News: The Hyperinflation in Serbia---Special, Today Only: 6 Million Dinars for a Snickers Bar
477(1)
Menu Costs
478(1)
Relative-Price Variability and the Misallocation of Resources
478(1)
Inflation-Induced Tax Distortions
478(2)
Confusion and Inconvenience
480(1)
A Special Cost of Unexpected Inflation: Arbitrary Redistributions of Wealth
481(1)
Case Study: The Wizard of Oz and the Free-Silver Debate
481(2)
Conclusion
483(1)
In the News: How to Protect Your Savings from Inflation---Inflation Fighters for the Long Term
484(1)
Summary
484(2)
Key Concepts
486(1)
Questions for Review
486(1)
Problems and Applications
486(3)
PART NINE SHORT-RUN ECONOMIC FLUCUATIONS 489(322)
Aggregate Demand and Aggregate Supply
491(32)
Three Key Facts about Economic Fluctuations
492(3)
Economic Fluctuations Are Irregular and Unpredictable
492(2)
Most Macroeconomic Quantities Fluctuate Together
494(1)
As Output Falls, Unemployment Rises
495(1)
Explaining Short-Run Economic Fluctuations
495(2)
How the Short Run Differs from the Long Run
495(1)
The Basic Model of Economic Fluctuations
496(1)
The Aggregate-Demand Curve
497(5)
Why the Aggregate-Demand Curve Slopes Downward
497(1)
The Price Level and Consumption: The Wealth Effect
498(1)
The Price Level and Investment: The Interest-Rate Effect
498(1)
The Price Level and Net Exports: The Exchange-Rate Effect
499(1)
Summary
499(1)
Why the Aggregate-Demand Curve Might Shift
499(1)
Shifts Arising from Consumption
499(1)
Shifts Arising from Investment
500(1)
Shifts Arising from Government Purchases
500(1)
Shifts Arising from Net Exports
500(1)
Summary
501(1)
The Aggregate-Supply Curve
502(8)
Why the Aggregate-Supply Curve Is Vertical in the Long Run
502(1)
Why the Long-Run Aggregate-Supply Curve Might Shift
503(1)
Shifts Arising from Labor
503(1)
Shifts Arising from Capital
504(1)
Shifts Arising from Natural Resources
504(1)
Shifts Arising from Technological Knowledge
504(1)
Summary
504(1)
A New Way to Depict Long-Run Growth and Inflation
505(1)
Why the Aggregate-Supply Curve Slopes Upward in the Short Run
506(1)
The Misperceptions Theory
507(1)
The Sticky-Wage Theory
507(1)
The Sticky-Price Theory
507(1)
Summary
508(1)
Why the Short-Run Aggregate-Supply Curve Might Shift
508(2)
Two Causes of Economic Fluctuations
510(8)
The Effects of a Shift in Aggregate Demand
511(2)
Case Study: Two Big Shifts in Aggregate Demand: The Great Depression and World War II
513(2)
In the News: How Consumers Shift Aggregate Demand---Consumers Get the Credit for Expanding Economy
515(1)
The Effect of a Shift in Aggregate Supply
515(2)
Case Study: Oil and the Economy
517(1)
Conclusion: The Origins of Aggregate Demand and Aggregate Supply
518(1)
Summary
519(1)
Key Concepts
520(1)
Questions for Review
520(1)
Problems and Applications
520(3)
The Influence of Monetary and Fiscal Policy on Aggregate Demand
523(288)
How Monetary Policy Influences Aggregate Demand
524(10)
The Theory of Liquidity Preference
525(1)
Money Supply
525(1)
Money Demand
526(1)
Equilibrium in the Money Market
527(1)
The Downward Slope of the Aggregate-Demand Curve
527(2)
FYI: Interest Rates in the Long Run and the Short Run
529(1)
Changes in the Money Supply
530(1)
The Role of Interest-Rate Targets in Fed Policy
530(2)
Case Study: Why the Fed Watches the Stock Market (and Vice Versa)
532(1)
In the News: European Central Bankers Expand Aggregate Demand---European Banks, Acting in Unison, Cut Interest Rate: 11 Nations Decide That Growth, Not Inflation, Is Top Concern
533(1)
How Fiscal Policy Influences Aggregate Demand
534(7)
Changes in Government Purchases
534(1)
The Multiplier Effect
535(1)
A Formula for the Spending Multiplier
535(2)
Other Applications of the Multiplier Effect
537(1)
The Crowding-Out Effect
538(1)
Changes in Taxes
538(2)
In the News: Japan Tries a Fiscal Stimulus---The Land of the Rising Outlook: Public Spending May Have Reversed Japan's Downturn
540(1)
FYI: How Fiscal Policy Might Affect Aggregate Supply
541(1)
Using Policy to Stabilize the Economy
541(4)
The Case for Active Stabilization Policy
541(1)
Case Study: Keynesians in the White House
542(2)
The Case against Active Stabilization Policy
544(1)
Automatic Stabilizers
544(1)
Conclusion
545(1)
In the News: The Independence of the Federal Reserve---Don't Tread on the Fed
546(1)
Summary
546(2)
Key Concepts
548(1)
Questions for Review
548(1)
Problems and Applications
548(263)
Glossary 811
Credits 555(2)
Index 557


Please wait while the item is added to your cart...