1INTRODUCTION
60MACROECONOMIC ISSUES
2SECTION I: FUNDAMENTAL ECONOMIC CONCEPTS
61Economic Growth and Living Standards
3BASIC ASSUMPTIONS OF ECONOMICS
62Recessions and Expansions
4Scarcity
63Unemployment
5Trade-offs
64Inflation
6Opportunity Cost
65International Trade
7Rationality
66MACROECONOMIC MEASUREMENT
8Gains from Trade
67Measuring Total Output: Gross Domestic Product
9MODELS AND ECONOMIC THEORY
68Understanding What GDP Measures
10POSITIVE AND NORMATIVE ECONOMICS
69Other Ways to Measure GDP: Expenditures Equal Production
11EFFICIENCY AS A GOAL
70Yet Another Way to Measure GDP: Income Equals Production Equals Expenditures
12MICROECONOMICS AND MACROECONOMICS
71Real GDP
13SECTION II: MICROECONOMICS
72Measuring Inflation
14PERFECTLY COMPETITIVE MARKETS
73Unemployment
15Markets
74ECONOMIC GROWTH, PRODUCTIVITY, AND LIVING STANDARDS
16Demand
75The Circular Flow Model of the Economy
17Shifts in the Demand Curve
76What Determines How Much an Economy Produces?
18Supply
77SAVINGS, INVESTMENT, AND THE FINANCIAL SYSTEM
19Shifts in the Supply Curve
78Financial Markets
20Equilibrium
79Financial Intermediaries
21APPLICATIONS OF THE COMPETITIVE MARKET MODEL
80Saving and Investment in Aggregate
22The Characteristics of Competitive Market Equilibrium
81International Capital Flows in an Open Economy
23Changes in Market Equilibrium
82How Financial Markets Coordinate Saving and Investment Decisions
24Elasticity
83MONEY AND PRICES IN THE LONG RUN
25Using Elasticity
84What Is Money?
26EVALUATING GOVERNMENT POLICY: THE IMPACT OF PRICE CONTROLS AND TAXES
85Measuring Money
27Price Controls
86The Federal Reserve System, Banks, and the Supply of Money
28Taxes
87Bank Runs
29INTERNATIONAL TRADE
88Money and Inflation in the Long Run
30An Isolated Economy
89Why Worry about Inflation?
31Adding the Opportunity to Trade
90SHORT–RUN ECONOMIC FLUCTUATIONS
32Comparative Advantage and the Gains from Trade
91Characteristics of Short-Run Fluctuations
33The Political Economy of Trade
92Potential Output, the Output Gap, and the Natural Rate of Unemployment
34THE PROFIT MOTIVE AND THE BEHAVIOR OF FIRMS
93Explaining Short-Run Fluctuations in Output
35Economic Profits and Accounting Profits
94The Aggregate Demand Curve
36Finding the Firm’s Supply Curve
95The Aggregate Supply Curve
37Entry, Exit, and the Market Supply Curve
96The Keynesian Model of Short-Run Fluctuations
38IMPERFECT COMPETITION
97Inflation in the Keynesian Model
39Monopoly
98Using Fiscal and Monetary Policy to Stabilize the Economy
40Monopoly Supply
99Section IV: THE U.S. ECONOMY IN THE 1920s
41Welfare Consequences of Monopoly
100SECTION IV INTRODUCTION
42Dealing with Monopolies
101PROSPERITY IN THE ROARING 1920s
43Price Discrimination
102Economic Growth and Innovation
44Oligopoly
103Consumer Credit Expansion
45Monopolistic Competition
104The Urban Housing Boom
46CREATIVE DESTRUCTION: THE PROFIT MOTIVE AND THE SOURCES OF ECONOMIC CHANGE
105The U.S. in a Global Context
47MARKET FAILURES
106THE RISE AND ROLE OF GOVERNMENT
48Externalities
107Local Government
49The Effect of Externalities on Resource Allocation
108The Federal Government
50Private Responses to Externalities
109THE 1929 STOCK MARKET CRASH AND THE GREAT DEPRESSION
51Government Regulation of Externalities
110The Seeds of the Crash
52Property Rights
111The 1929 Crash: Facts and Figures
53The Effects of Private Ownership
112The Government Response
54Public and Private Goods
113The 1937 Recession
55INSTITUTIONS, ORGANIZATIONS, AND GOVERNMENT
114World War II: The Economic Crisis Finally Ends
56Pork Barrel Politics
115THE LEGACY OF THE 1920s
57Rent Seeking
116Regulations
58What Is the Proper Role for Government?
117Comparing the Great Depression with the Great Recession
59Section III: Macroeconomics
