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Frank/Bernanke also encourages students to become "Economic Naturalists," by employing basic economic principles to understand and explain what they observe in the world around them. An economic naturalist understands, for example, that infant safety seats are required in cars but not in airplanes because the marginal cost of space to accommodate these seats is typically zero in cars but often hundreds of dollars in airplanes. Such examples engage student interest while teaching them to see each feature of their economic landscape as the reflection of an implicit or explicit cost-benefit calculation.
Table of Contents
Part 1 Introduction
1. Thinking Like an Economist
2. Comparative Advantage
3. Supply and Demand
Part 2 Macroeconomics: Data and Issues
4. Spending, Income, and GDP
5. Inflation and the Price Level
6. Wages and Unemployment
Part 3 The Economy in the Long Run
7. Economic Growth
8. Saving, Capital Formation, and Financial Markets
9. Money, Prices, and the Financial System
Part 4 The Economy in the Short Run
10. Short-term Economic Fluctuations
11. Spending, Output, and Fiscal Policy
12. Monetary Policy and the Federal Reserve
13. Aggregate Demand, Aggregate Supply, and Business Cycles
14. Macroeconomic Policy
Part 5 The International Economy
15. Exchange Rates, International Trade, and Capital Flows