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Principles of Macroeconomics 2e

Index

Principles of Macroeconomics 2eIndex
  1. Preface
  2. 1 Welcome to Economics!
    1. Introduction
    2. 1.1 What Is Economics, and Why Is It Important?
    3. 1.2 Microeconomics and Macroeconomics
    4. 1.3 How Economists Use Theories and Models to Understand Economic Issues
    5. 1.4 How To Organize Economies: An Overview of Economic Systems
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
  3. 2 Choice in a World of Scarcity
    1. Introduction to Choice in a World of Scarcity
    2. 2.1 How Individuals Make Choices Based on Their Budget Constraint
    3. 2.2 The Production Possibilities Frontier and Social Choices
    4. 2.3 Confronting Objections to the Economic Approach
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  4. 3 Demand and Supply
    1. Introduction to Demand and Supply
    2. 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
    3. 3.2 Shifts in Demand and Supply for Goods and Services
    4. 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
    5. 3.4 Price Ceilings and Price Floors
    6. 3.5 Demand, Supply, and Efficiency
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  5. 4 Labor and Financial Markets
    1. Introduction to Labor and Financial Markets
    2. 4.1 Demand and Supply at Work in Labor Markets
    3. 4.2 Demand and Supply in Financial Markets
    4. 4.3 The Market System as an Efficient Mechanism for Information
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  6. 5 Elasticity
    1. Introduction to Elasticity
    2. 5.1 Price Elasticity of Demand and Price Elasticity of Supply
    3. 5.2 Polar Cases of Elasticity and Constant Elasticity
    4. 5.3 Elasticity and Pricing
    5. 5.4 Elasticity in Areas Other Than Price
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  7. 6 The Macroeconomic Perspective
    1. Introduction to the Macroeconomic Perspective
    2. 6.1 Measuring the Size of the Economy: Gross Domestic Product
    3. 6.2 Adjusting Nominal Values to Real Values
    4. 6.3 Tracking Real GDP over Time
    5. 6.4 Comparing GDP among Countries
    6. 6.5 How Well GDP Measures the Well-Being of Society
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  8. 7 Economic Growth
    1. Introduction to Economic Growth
    2. 7.1 The Relatively Recent Arrival of Economic Growth
    3. 7.2 Labor Productivity and Economic Growth
    4. 7.3 Components of Economic Growth
    5. 7.4 Economic Convergence
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  9. 8 Unemployment
    1. Introduction to Unemployment
    2. 8.1 How Economists Define and Compute Unemployment Rate
    3. 8.2 Patterns of Unemployment
    4. 8.3 What Causes Changes in Unemployment over the Short Run
    5. 8.4 What Causes Changes in Unemployment over the Long Run
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  10. 9 Inflation
    1. Introduction to Inflation
    2. 9.1 Tracking Inflation
    3. 9.2 How to Measure Changes in the Cost of Living
    4. 9.3 How the U.S. and Other Countries Experience Inflation
    5. 9.4 The Confusion Over Inflation
    6. 9.5 Indexing and Its Limitations
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  11. 10 The International Trade and Capital Flows
    1. Introduction to the International Trade and Capital Flows
    2. 10.1 Measuring Trade Balances
    3. 10.2 Trade Balances in Historical and International Context
    4. 10.3 Trade Balances and Flows of Financial Capital
    5. 10.4 The National Saving and Investment Identity
    6. 10.5 The Pros and Cons of Trade Deficits and Surpluses
    7. 10.6 The Difference between Level of Trade and the Trade Balance
    8. Key Terms
    9. Key Concepts and Summary
    10. Self-Check Questions
    11. Review Questions
    12. Critical Thinking Questions
    13. Problems
  12. 11 The Aggregate Demand/Aggregate Supply Model
    1. Introduction to the Aggregate Supply–Aggregate Demand Model
    2. 11.1 Macroeconomic Perspectives on Demand and Supply
    3. 11.2 Building a Model of Aggregate Demand and Aggregate Supply
    4. 11.3 Shifts in Aggregate Supply
    5. 11.4 Shifts in Aggregate Demand
    6. 11.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation
    7. 11.6 Keynes’ Law and Say’s Law in the AD/AS Model
    8. Key Terms
    9. Key Concepts and Summary
    10. Self-Check Questions
    11. Review Questions
    12. Critical Thinking Questions
    13. Problems
  13. 12 The Keynesian Perspective
    1. Introduction to the Keynesian Perspective
    2. 12.1 Aggregate Demand in Keynesian Analysis
    3. 12.2 The Building Blocks of Keynesian Analysis
    4. 12.3 The Phillips Curve
    5. 12.4 The Keynesian Perspective on Market Forces
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
  14. 13 The Neoclassical Perspective
    1. Introduction to the Neoclassical Perspective
    2. 13.1 The Building Blocks of Neoclassical Analysis
    3. 13.2 The Policy Implications of the Neoclassical Perspective
    4. 13.3 Balancing Keynesian and Neoclassical Models
    5. Key Terms
    6. Key Concepts and Summary
    7. Self-Check Questions
    8. Review Questions
    9. Critical Thinking Questions
    10. Problems
  15. 14 Money and Banking
    1. Introduction to Money and Banking
    2. 14.1 Defining Money by Its Functions
    3. 14.2 Measuring Money: Currency, M1, and M2
    4. 14.3 The Role of Banks
    5. 14.4 How Banks Create Money
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  16. 15 Monetary Policy and Bank Regulation
    1. Introduction to Monetary Policy and Bank Regulation
    2. 15.1 The Federal Reserve Banking System and Central Banks
    3. 15.2 Bank Regulation
    4. 15.3 How a Central Bank Executes Monetary Policy
    5. 15.4 Monetary Policy and Economic Outcomes
    6. 15.5 Pitfalls for Monetary Policy
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  17. 16 Exchange Rates and International Capital Flows
    1. Introduction to Exchange Rates and International Capital Flows
    2. 16.1 How the Foreign Exchange Market Works
    3. 16.2 Demand and Supply Shifts in Foreign Exchange Markets
    4. 16.3 Macroeconomic Effects of Exchange Rates
    5. 16.4 Exchange Rate Policies
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  18. 17 Government Budgets and Fiscal Policy
    1. Introduction to Government Budgets and Fiscal Policy
    2. 17.1 Government Spending
    3. 17.2 Taxation
    4. 17.3 Federal Deficits and the National Debt
    5. 17.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
    6. 17.5 Automatic Stabilizers
    7. 17.6 Practical Problems with Discretionary Fiscal Policy
    8. 17.7 The Question of a Balanced Budget
    9. Key Terms
    10. Key Concepts and Summary
    11. Self-Check Questions
    12. Review Questions
    13. Critical Thinking Questions
    14. Problems
  19. 18 The Impacts of Government Borrowing
    1. Introduction to the Impacts of Government Borrowing
    2. 18.1 How Government Borrowing Affects Investment and the Trade Balance
    3. 18.2 Fiscal Policy and the Trade Balance
    4. 18.3 How Government Borrowing Affects Private Saving
    5. 18.4 Fiscal Policy, Investment, and Economic Growth
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  20. 19 Macroeconomic Policy Around the World
    1. Introduction to Macroeconomic Policy around the World
    2. 19.1 The Diversity of Countries and Economies across the World
    3. 19.2 Improving Countries’ Standards of Living
    4. 19.3 Causes of Unemployment around the World
    5. 19.4 Causes of Inflation in Various Countries and Regions
    6. 19.5 Balance of Trade Concerns
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  21. 20 International Trade
    1. Introduction to International Trade
    2. 20.1 Absolute and Comparative Advantage
    3. 20.2 What Happens When a Country Has an Absolute Advantage in All Goods
    4. 20.3 Intra-industry Trade between Similar Economies
    5. 20.4 The Benefits of Reducing Barriers to International Trade
    6. Key Terms
    7. Key Concepts and Summary
    8. Self-Check Questions
    9. Review Questions
    10. Critical Thinking Questions
    11. Problems
  22. 21 Globalization and Protectionism
    1. Introduction to Globalization and Protectionism
    2. 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
    3. 21.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
    4. 21.3 Arguments in Support of Restricting Imports
    5. 21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
    6. 21.5 The Tradeoffs of Trade Policy
    7. Key Terms
    8. Key Concepts and Summary
    9. Self-Check Questions
    10. Review Questions
    11. Critical Thinking Questions
    12. Problems
  23. A | The Use of Mathematics in Principles of Economics
  24. B | The Expenditure-Output Model
  25. Answer Key
    1. Chapter 1
    2. Chapter 2
    3. Chapter 3
    4. Chapter 4
    5. Chapter 5
    6. Chapter 6
    7. Chapter 7
    8. Chapter 8
    9. Chapter 9
    10. Chapter 10
    11. Chapter 11
    12. Chapter 12
    13. Chapter 13
    14. Chapter 14
    15. Chapter 15
    16. Chapter 16
    17. Chapter 17
    18. Chapter 18
    19. Chapter 19
    20. Chapter 20
    21. Chapter 21
  26. References
  27. Index
Symbols
401(k)9.4 The Confusion Over Inflation
A
A.W. Phillips12.3 The Phillips Curve
Abhijit Bannerjee19.2 Improving Countries’ Standards of Living
Abraham García7.3 Components of Economic Growth
absolute advantage20.1 Absolute and Comparative Advantage
Adam Smith1.1 What Is Economics, and Why Is It Important?, 2.3 Confronting Objections to the Economic Approach, 11.1 Macroeconomic Perspectives on Demand and Supply
adaptive expectations13.1 The Building Blocks of Neoclassical Analysis
adjustable-rate mortgage (ARM)9.5 Indexing and Its Limitations
adverse selection of wage cuts argument8.3 What Causes Changes in Unemployment over the Short Run
aggregate demandIntroduction to the Aggregate Supply–Aggregate Demand Model, 12.1 Aggregate Demand in Keynesian Analysis, 13.1 The Building Blocks of Neoclassical Analysis, 13.2 The Policy Implications of the Neoclassical Perspective, 13.2 The Policy Implications of the Neoclassical Perspective, 15.4 Monetary Policy and Economic Outcomes, 15.5 Pitfalls for Monetary Policy, 16.3 Macroeconomic Effects of Exchange Rates, 17.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation, 19.3 Causes of Unemployment around the World, Appendix B The Expenditure-Output Model
aggregate demand (AD)Introduction to the Macroeconomic Perspective, 11.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate demand (AD) curve11.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate demand/aggregate supply (AD/AS)Introduction to Money and Banking
aggregate demand/aggregate supply model11.2 Building a Model of Aggregate Demand and Aggregate Supply, 13.1 The Building Blocks of Neoclassical Analysis
aggregate expenditure functionAppendix B The Expenditure-Output Model
aggregate expenditure lineAppendix B The Expenditure-Output Model
aggregate expenditure scheduleAppendix B The Expenditure-Output Model
aggregate expendituresAppendix B The Expenditure-Output Model
aggregate production function7.2 Labor Productivity and Economic Growth, 7.3 Components of Economic Growth, 7.4 Economic Convergence
aggregate supplyIntroduction to the Aggregate Supply–Aggregate Demand Model, 13.1 The Building Blocks of Neoclassical Analysis, 17.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
aggregate supply (AS)Introduction to the Macroeconomic Perspective, 11.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate supply (AS) curve11.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate supply curve13.2 The Policy Implications of the Neoclassical Perspective
Alexander Gerschenkron7.4 Economic Convergence
Alfred Marshall3.5 Demand, Supply, and Efficiency
Allocative efficiency2.2 The Production Possibilities Frontier and Social Choices
American Recovery and Reinvestment Act of 200912.2 The Building Blocks of Keynesian Analysis
Anti-dumping laws21.3 Arguments in Support of Restricting Imports
appreciating16.1 How the Foreign Exchange Market Works
arbitrage16.2 Demand and Supply Shifts in Foreign Exchange Markets
Asian Financial Crisis19.5 Balance of Trade Concerns
asset14.3 The Role of Banks
asset-liability time mismatch14.3 The Role of Banks
assets15.2 Bank Regulation
automatic stabilizers17.5 Automatic Stabilizers, 19.3 Causes of Unemployment around the World
B
balance of payments10.3 Trade Balances and Flows of Financial Capital
balance of tradeIntroduction to the International Trade and Capital Flows, 10.6 The Difference between Level of Trade and the Trade Balance, 16.4 Exchange Rate Policies
balance sheet14.3 The Role of Banks
balanced budget17.1 Government Spending, 17.7 The Question of a Balanced Budget
bank capital14.3 The Role of Banks, 15.2 Bank Regulation
Bank regulation15.2 Bank Regulation
bank run15.2 Bank Regulation
bankrupt16.3 Macroeconomic Effects of Exchange Rates
bar graphAppendix A The Use of Mathematics in Principles of Economics
Barter14.1 Defining Money by Its Functions
base year9.1 Tracking Inflation
basic quantity equation of money15.5 Pitfalls for Monetary Policy
basket of goods and services9.1 Tracking Inflation
bonds9.5 Indexing and Its Limitations, 14.3 The Role of Banks, 15.3 How a Central Bank Executes Monetary Policy
budget constraint2.1 How Individuals Make Choices Based on Their Budget Constraint
budget deficit17.1 Government Spending
budget surplus17.1 Government Spending
Bureau of Economic Analysis (BEA)10.1 Measuring Trade Balances
Bureau of Labor Statistics6.5 How Well GDP Measures the Well-Being of Society
business confidence11.4 Shifts in Aggregate Demand
business cycle6.3 Tracking Real GDP over Time
C
capital deepening7.3 Components of Economic Growth
central bank15.1 The Federal Reserve Banking System and Central Banks, 15.5 Pitfalls for Monetary Policy, 16.3 Macroeconomic Effects of Exchange Rates, 16.4 Exchange Rate Policies
certificates of deposit (CDs)14.2 Measuring Money: Currency, M1, and M2
ceteris paribus3.2 Shifts in Demand and Supply for Goods and Services, 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process, 4.1 Demand and Supply at Work in Labor Markets
circular flow diagram1.3 How Economists Use Theories and Models to Understand Economic Issues
coins and currency in circulation14.2 Measuring Money: Currency, M1, and M2
command economy1.4 How To Organize Economies: An Overview of Economic Systems
commodity money14.1 Defining Money by Its Functions
Commodity-backed currencies14.1 Defining Money by Its Functions
common markets21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
comparative advantage1.1 What Is Economics, and Why Is It Important?, 2.2 The Production Possibilities Frontier and Social Choices, 10.3 Trade Balances and Flows of Financial Capital, 20.1 Absolute and Comparative Advantage, 21.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
complements3.2 Shifts in Demand and Supply for Goods and Services
compound growth rate7.2 Labor Productivity and Economic Growth
Constant unitary elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
consumer confidence11.4 Shifts in Aggregate Demand
Consumer Price Index (CPI)9.2 How to Measure Changes in the Cost of Living
consumer surplus3.5 Demand, Supply, and Efficiency, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
consumption budget constraint2.2 The Production Possibilities Frontier and Social Choices
consumption demand6.1 Measuring the Size of the Economy: Gross Domestic Product
consumption functionAppendix B The Expenditure-Output Model
contractionary fiscal policy12.3 The Phillips Curve, 17.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
contractionary monetary policy15.4 Monetary Policy and Economic Outcomes, 16.4 Exchange Rate Policies, 18.4 Fiscal Policy, Investment, and Economic Growth
contractual rights7.1 The Relatively Recent Arrival of Economic Growth
convergence7.4 Economic Convergence
converging economy19.4 Causes of Inflation in Various Countries and Regions
coordination argument12.2 The Building Blocks of Keynesian Analysis
core competency1.1 What Is Economics, and Why Is It Important?
core inflation index9.2 How to Measure Changes in the Cost of Living
corporate income tax17.2 Taxation
cost2.2 The Production Possibilities Frontier and Social Choices
cost of living9.2 How to Measure Changes in the Cost of Living
cost-of-living adjustments (COLAs)9.5 Indexing and Its Limitations
countercyclical15.4 Monetary Policy and Economic Outcomes
credit card14.2 Measuring Money: Currency, M1, and M2
credit union14.3 The Role of Banks
cross-price elasticity of demand5.4 Elasticity in Areas Other Than Price
crowding out17.6 Practical Problems with Discretionary Fiscal Policy, 18.4 Fiscal Policy, Investment, and Economic Growth
current account balance10.1 Measuring Trade Balances
cyclical unemployment8.3 What Causes Changes in Unemployment over the Short Run, 11.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation, 13.2 The Policy Implications of the Neoclassical Perspective
D
David Ricardo20.1 Absolute and Comparative Advantage
deadweight loss3.5 Demand, Supply, and Efficiency
dealers16.1 How the Foreign Exchange Market Works
debit card14.2 Measuring Money: Currency, M1, and M2
deficit18.1 How Government Borrowing Affects Investment and the Trade Balance
deflation9.3 How the U.S. and Other Countries Experience Inflation, 15.5 Pitfalls for Monetary Policy
demand3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 6.1 Measuring the Size of the Economy: Gross Domestic Product, 11.1 Macroeconomic Perspectives on Demand and Supply, Introduction to Exchange Rates and International Capital Flows
demand and supply diagram3.5 Demand, Supply, and Efficiency
demand and supply models4.3 The Market System as an Efficient Mechanism for Information
demand curve3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.2 Shifts in Demand and Supply for Goods and Services, 5.1 Price Elasticity of Demand and Price Elasticity of Supply, 5.2 Polar Cases of Elasticity and Constant Elasticity, 16.2 Demand and Supply Shifts in Foreign Exchange Markets, 18.4 Fiscal Policy, Investment, and Economic Growth, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
demand deposits14.2 Measuring Money: Currency, M1, and M2
demand schedule3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
deposit insurance15.2 Bank Regulation
depository institutions14.3 The Role of Banks
depreciating16.1 How the Foreign Exchange Market Works
depreciation6.1 Measuring the Size of the Economy: Gross Domestic Product
depression6.3 Tracking Real GDP over Time, 8.2 Patterns of Unemployment
direct investment16.4 Exchange Rate Policies
discount rate15.3 How a Central Bank Executes Monetary Policy
Discouraged workers8.1 How Economists Define and Compute Unemployment Rate
discretionary fiscal policy17.5 Automatic Stabilizers, 19.3 Causes of Unemployment around the World
disposable income12.1 Aggregate Demand in Keynesian Analysis
disruptive market change21.5 The Tradeoffs of Trade Policy
diversify14.3 The Role of Banks
division of labor1.1 What Is Economics, and Why Is It Important?, 20.3 Intra-industry Trade between Similar Economies
dollarize16.1 How the Foreign Exchange Market Works
double coincidence of wants14.1 Defining Money by Its Functions
double counting6.1 Measuring the Size of the Economy: Gross Domestic Product
Dow Jones15.5 Pitfalls for Monetary Policy
dumping20.4 The Benefits of Reducing Barriers to International Trade, 21.3 Arguments in Support of Restricting Imports
durable goods6.1 Measuring the Size of the Economy: Gross Domestic Product
E
East Asian Tigers19.2 Improving Countries’ Standards of Living
economic efficiency2.3 Confronting Objections to the Economic Approach
economic growthIntroduction to Money and Banking
economic surplus3.5 Demand, Supply, and Efficiency
economic unions21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
Economics1.1 What Is Economics, and Why Is It Important?
economies of scale1.1 What Is Economics, and Why Is It Important?, 20.3 Intra-industry Trade between Similar Economies
efficiency3.5 Demand, Supply, and Efficiency
Efficiency wage theory8.3 What Causes Changes in Unemployment over the Short Run
elastic demand5.1 Price Elasticity of Demand and Price Elasticity of Supply
elastic supply5.1 Price Elasticity of Demand and Price Elasticity of Supply
ElasticityIntroduction to Elasticity
elasticity of savings5.4 Elasticity in Areas Other Than Price
Employment Cost Index9.2 How to Measure Changes in the Cost of Living
equilibrium3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.5 Demand, Supply, and Efficiency, 4.1 Demand and Supply at Work in Labor Markets, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers, Appendix B The Expenditure-Output Model
equilibrium exchange rate16.2 Demand and Supply Shifts in Foreign Exchange Markets
equilibrium price3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
equilibrium quantity3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
estate and gift tax17.2 Taxation
Esther Duflo19.2 Improving Countries’ Standards of Living
European Union21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
European Union (EU)3.4 Price Ceilings and Price Floors
excess demand3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
excess reserves15.5 Pitfalls for Monetary Policy
excess supply3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
exchange rate6.4 Comparing GDP among Countries, Introduction to Exchange Rates and International Capital Flows, 18.2 Fiscal Policy and the Trade Balance
exchange rates15.5 Pitfalls for Monetary Policy
excise tax17.2 Taxation
expansionary fiscal policy12.3 The Phillips Curve, 17.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
expansionary monetary policy15.4 Monetary Policy and Economic Outcomes, 16.4 Exchange Rate Policies, 18.4 Fiscal Policy, Investment, and Economic Growth, 19.3 Causes of Unemployment around the World
expected inflation13.2 The Policy Implications of the Neoclassical Perspective
expenditure multiplier12.2 The Building Blocks of Keynesian Analysis
expenditure-output modelAppendix B The Expenditure-Output Model
export20.2 What Happens When a Country Has an Absolute Advantage in All Goods
Exports1.4 How To Organize Economies: An Overview of Economic Systems, 10.1 Measuring Trade Balances, 11.2 Building a Model of Aggregate Demand and Aggregate Supply, 12.1 Aggregate Demand in Keynesian Analysis, 16.3 Macroeconomic Effects of Exchange Rates
exports of goods and services as a percentage of GDP10.2 Trade Balances in Historical and International Context
F
factors of production3.2 Shifts in Demand and Supply for Goods and Services
Federal Deposit Insurance Corporation (FDIC)15.2 Bank Regulation
federal funds rate15.4 Monetary Policy and Economic Outcomes
Federal Open Market Committee (FOMC)15.3 How a Central Bank Executes Monetary Policy
Federal Reserve15.1 The Federal Reserve Banking System and Central Banks, 15.2 Bank Regulation, 15.5 Pitfalls for Monetary Policy, 18.4 Fiscal Policy, Investment, and Economic Growth, 19.5 Balance of Trade Concerns
Federal Reserve Bank14.2 Measuring Money: Currency, M1, and M2
Federal Reserve Economic Data (FRED)8.2 Patterns of Unemployment, 16.1 How the Foreign Exchange Market Works, 16.4 Exchange Rate Policies
fiat money14.1 Defining Money by Its Functions
final goods and services6.1 Measuring the Size of the Economy: Gross Domestic Product
financial capital4.2 Demand and Supply in Financial Markets, 10.3 Trade Balances and Flows of Financial Capital, 10.4 The National Saving and Investment Identity, 15.5 Pitfalls for Monetary Policy, 18.1 How Government Borrowing Affects Investment and the Trade Balance
financial capital market10.4 The National Saving and Investment Identity
financial capital markets17.6 Practical Problems with Discretionary Fiscal Policy, 18.1 How Government Borrowing Affects Investment and the Trade Balance
financial intermediary14.3 The Role of Banks
firm2.2 The Production Possibilities Frontier and Social Choices, 3.2 Shifts in Demand and Supply for Goods and Services
firms16.1 How the Foreign Exchange Market Works
fiscal policy1.2 Microeconomics and Macroeconomics, Introduction to Government Budgets and Fiscal Policy, 19.3 Causes of Unemployment around the World
floating exchange rate16.4 Exchange Rate Policies
Foreign direct investment (FDI)16.1 How the Foreign Exchange Market Works
foreign exchange market16.1 How the Foreign Exchange Market Works, 16.2 Demand and Supply Shifts in Foreign Exchange Markets
foreign financial capital10.4 The National Saving and Investment Identity
foreign investment capital16.3 Macroeconomic Effects of Exchange Rates
free trade21.3 Arguments in Support of Restricting Imports
free trade agreements21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
frictional unemployment8.4 What Causes Changes in Unemployment over the Long Run
full-employment GDP11.2 Building a Model of Aggregate Demand and Aggregate Supply
functionAppendix A The Use of Mathematics in Principles of Economics
G
gain from trade20.1 Absolute and Comparative Advantage
GDP16.1 How the Foreign Exchange Market Works, 16.2 Demand and Supply Shifts in Foreign Exchange Markets
GDP deflator6.2 Adjusting Nominal Values to Real Values, 9.2 How to Measure Changes in the Cost of Living
GDP per capita6.4 Comparing GDP among Countries, 6.5 How Well GDP Measures the Well-Being of Society, 7.3 Components of Economic Growth, 11.3 Shifts in Aggregate Supply, 19.1 The Diversity of Countries and Economies across the World
General Agreement on Tariffs and Trade (GATT)21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
globalization1.4 How To Organize Economies: An Overview of Economic Systems, Introduction to International Trade, 21.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
good3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
goods and services market1.3 How Economists Use Theories and Models to Understand Economic Issues
Great Depression6.3 Tracking Real GDP over Time, 11.1 Macroeconomic Perspectives on Demand and Supply, Introduction to the Neoclassical Perspective, 13.3 Balancing Keynesian and Neoclassical Models, Introduction to International Trade
Great Recession6.1 Measuring the Size of the Economy: Gross Domestic Product, 6.3 Tracking Real GDP over Time, 9.3 How the U.S. and Other Countries Experience Inflation, Introduction to the Neoclassical Perspective, 19.3 Causes of Unemployment around the World
Gross domestic product (GDP)1.4 How To Organize Economies: An Overview of Economic Systems, 6.1 Measuring the Size of the Economy: Gross Domestic Product
gross national product (GNP)6.1 Measuring the Size of the Economy: Gross Domestic Product
growth consensus19.2 Improving Countries’ Standards of Living
growth rateAppendix A The Use of Mathematics in Principles of Economics
H
hard peg16.4 Exchange Rate Policies
Head Start program18.4 Fiscal Policy, Investment, and Economic Growth
hedge16.1 How the Foreign Exchange Market Works
hidden unemployment8.1 How Economists Define and Compute Unemployment Rate
High-income countries21.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 21.3 Arguments in Support of Restricting Imports
Human capital7.2 Labor Productivity and Economic Growth, 7.3 Components of Economic Growth, 13.1 The Building Blocks of Neoclassical Analysis, 17.7 The Question of a Balanced Budget, 18.4 Fiscal Policy, Investment, and Economic Growth, 19.2 Improving Countries’ Standards of Living
hyperinflation9.3 How the U.S. and Other Countries Experience Inflation
I
implementation lag17.6 Practical Problems with Discretionary Fiscal Policy
implicit contract8.3 What Causes Changes in Unemployment over the Short Run
import quotas21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
Imports1.4 How To Organize Economies: An Overview of Economic Systems, 10.1 Measuring Trade Balances, 11.2 Building a Model of Aggregate Demand and Aggregate Supply, 12.1 Aggregate Demand in Keynesian Analysis, 20.2 What Happens When a Country Has an Absolute Advantage in All Goods
income elasticity of demand5.4 Elasticity in Areas Other Than Price
income payments10.1 Measuring Trade Balances
index number9.1 Tracking Inflation
indexed9.5 Indexing and Its Limitations
individual income tax17.2 Taxation
Industrial Revolution7.1 The Relatively Recent Arrival of Economic Growth
inelastic demand5.1 Price Elasticity of Demand and Price Elasticity of Supply
inelastic supply5.1 Price Elasticity of Demand and Price Elasticity of Supply
infant industry argument19.5 Balance of Trade Concerns, 21.3 Arguments in Support of Restricting Imports
inferior good3.2 Shifts in Demand and Supply for Goods and Services, 5.4 Elasticity in Areas Other Than Price
Infinite elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
InflationIntroduction to Inflation, Introduction to the Aggregate Supply–Aggregate Demand Model, 11.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation, 12.3 The Phillips Curve, Introduction to Money and Banking, 15.1 The Federal Reserve Banking System and Central Banks, 19.4 Causes of Inflation in Various Countries and Regions
inflation rate15.4 Monetary Policy and Economic Outcomes
inflation targeting15.5 Pitfalls for Monetary Policy
inflationary gap12.1 Aggregate Demand in Keynesian Analysis, Appendix B The Expenditure-Output Model
infrastructure7.3 Components of Economic Growth, 17.7 The Question of a Balanced Budget
innovation7.2 Labor Productivity and Economic Growth
inputs3.2 Shifts in Demand and Supply for Goods and Services
insider-outsider model8.3 What Causes Changes in Unemployment over the Short Run
interbank market16.1 How the Foreign Exchange Market Works
interest rate4.2 Demand and Supply in Financial Markets, 12.1 Aggregate Demand in Keynesian Analysis
interest rates15.1 The Federal Reserve Banking System and Central Banks, 15.4 Monetary Policy and Economic Outcomes
intermediate goods6.1 Measuring the Size of the Economy: Gross Domestic Product
intermediate zone11.6 Keynes’ Law and Say’s Law in the AD/AS Model
international capital flows16.4 Exchange Rate Policies
international financial flows16.4 Exchange Rate Policies
International Price Index9.2 How to Measure Changes in the Cost of Living
international trade16.3 Macroeconomic Effects of Exchange Rates, 20.3 Intra-industry Trade between Similar Economies, 21.5 The Tradeoffs of Trade Policy
intertemporal choices2.3 Confronting Objections to the Economic Approach
intertemporal decision making4.2 Demand and Supply in Financial Markets
intra-industry trade20.3 Intra-industry Trade between Similar Economies
invention7.2 Labor Productivity and Economic Growth
inventories6.1 Measuring the Size of the Economy: Gross Domestic Product
Investment demand6.1 Measuring the Size of the Economy: Gross Domestic Product
Investment expenditure6.1 Measuring the Size of the Economy: Gross Domestic Product, 12.1 Aggregate Demand in Keynesian Analysis
investment functionAppendix B The Expenditure-Output Model
investment income10.3 Trade Balances and Flows of Financial Capital
invisible hand2.3 Confronting Objections to the Economic Approach
involuntary unemployment8.3 What Causes Changes in Unemployment over the Short Run
J
James Tobin16.4 Exchange Rate Policies
Jan Luiten van Zanden7.1 The Relatively Recent Arrival of Economic Growth
Janet L. Yellen15.1 The Federal Reserve Banking System and Central Banks
Jean-Baptiste Say11.1 Macroeconomic Perspectives on Demand and Supply
John Maynard Keynes1.3 How Economists Use Theories and Models to Understand Economic Issues, 11.1 Macroeconomic Perspectives on Demand and Supply, 13.1 The Building Blocks of Neoclassical Analysis, 17.6 Practical Problems with Discretionary Fiscal Policy
K
key input5.3 Elasticity and Pricing
Keynes’ law11.1 Macroeconomic Perspectives on Demand and Supply, 11.6 Keynes’ Law and Say’s Law in the AD/AS Model
Keynesian aggregate supply curve15.4 Monetary Policy and Economic Outcomes
Keynesian cross diagramAppendix B The Expenditure-Output Model
Keynesian economic model19.3 Causes of Unemployment around the World
Keynesian economics13.1 The Building Blocks of Neoclassical Analysis, 13.3 Balancing Keynesian and Neoclassical Models
Keynesian macroeconomic policy17.7 The Question of a Balanced Budget
Keynesian zone11.6 Keynes’ Law and Say’s Law in the AD/AS Model
L
labor force participation rate8.1 How Economists Define and Compute Unemployment Rate
labor market1.3 How Economists Use Theories and Models to Understand Economic Issues, 4.1 Demand and Supply at Work in Labor Markets, 8.3 What Causes Changes in Unemployment over the Short Run
labor markets9.4 The Confusion Over Inflation
Labor productivity7.2 Labor Productivity and Economic Growth
law of demand3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 4.2 Demand and Supply in Financial Markets
law of diminishing marginal utility2.1 How Individuals Make Choices Based on Their Budget Constraint
law of diminishing returns7.4 Economic Convergence
law of supply3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
legislative lag17.6 Practical Problems with Discretionary Fiscal Policy
lender of last resort15.2 Bank Regulation
level of trade10.6 The Difference between Level of Trade and the Trade Balance
leverage cycle15.5 Pitfalls for Monetary Policy
liability14.3 The Role of Banks
line graphsAppendix A The Use of Mathematics in Principles of Economics
Liquidity14.2 Measuring Money: Currency, M1, and M2
living wage4.1 Demand and Supply at Work in Labor Markets
loan market14.3 The Role of Banks
long run aggregate supply (LRAS) curve11.2 Building a Model of Aggregate Demand and Aggregate Supply
loose monetary policy15.4 Monetary Policy and Economic Outcomes
low-income countries8.2 Patterns of Unemployment, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 21.3 Arguments in Support of Restricting Imports
M
M115.5 Pitfalls for Monetary Policy
M1 money supply14.2 Measuring Money: Currency, M1, and M2
M215.5 Pitfalls for Monetary Policy
M2 money supply14.2 Measuring Money: Currency, M1, and M2
macro economy8.3 What Causes Changes in Unemployment over the Short Run
macroeconomic externality12.2 The Building Blocks of Keynesian Analysis
Macroeconomics1.2 Microeconomics and Macroeconomics
marginal analysis2.1 How Individuals Make Choices Based on Their Budget Constraint
marginal propensity to consume (MPC)Appendix B The Expenditure-Output Model
marginal propensity to import (MPI)Appendix B The Expenditure-Output Model
marginal propensity to save (MPS)Appendix B The Expenditure-Output Model
marginal tax rates17.2 Taxation
market1.4 How To Organize Economies: An Overview of Economic Systems
market economy1.4 How To Organize Economies: An Overview of Economic Systems, 2.2 The Production Possibilities Frontier and Social Choices, 8.4 What Causes Changes in Unemployment over the Long Run, 9.4 The Confusion Over Inflation
medianAppendix A The Use of Mathematics in Principles of Economics
medium of exchange14.1 Defining Money by Its Functions
menu costs12.2 The Building Blocks of Keynesian Analysis
merchandise trade balance10.1 Measuring Trade Balances
merged currency16.4 Exchange Rate Policies
Microeconomics1.2 Microeconomics and Macroeconomics
Midpoint Formula5.1 Price Elasticity of Demand and Price Elasticity of Supply
Midpoint Method5.1 Price Elasticity of Demand and Price Elasticity of Supply, 5.1 Price Elasticity of Demand and Price Elasticity of Supply
Milton Friedman13.2 The Policy Implications of the Neoclassical Perspective, 15.5 Pitfalls for Monetary Policy, 16.4 Exchange Rate Policies
minimum wage4.1 Demand and Supply at Work in Labor Markets, 8.3 What Causes Changes in Unemployment over the Short Run, 9.4 The Confusion Over Inflation, 21.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
model1.3 How Economists Use Theories and Models to Understand Economic Issues
modern economic growth7.1 The Relatively Recent Arrival of Economic Growth
monetary policy1.2 Microeconomics and Macroeconomics, 15.1 The Federal Reserve Banking System and Central Banks, 15.3 How a Central Bank Executes Monetary Policy, 16.4 Exchange Rate Policies
money14.1 Defining Money by Its Functions
money market funds14.2 Measuring Money: Currency, M1, and M2
money multiplier15.5 Pitfalls for Monetary Policy
money multiplier formula14.4 How Banks Create Money
multiplier effectAppendix B The Expenditure-Output Model
N
Nasdaq15.5 Pitfalls for Monetary Policy
National Bureau of Economic Research19.5 Balance of Trade Concerns
National Bureau of Economic Research (NBER)6.3 Tracking Real GDP over Time
National Credit Union Administration (NCUA)15.2 Bank Regulation
national debt17.3 Federal Deficits and the National Debt
national income6.1 Measuring the Size of the Economy: Gross Domestic Product, 6.1 Measuring the Size of the Economy: Gross Domestic Product, Appendix B The Expenditure-Output Model
national interest argument21.3 Arguments in Support of Restricting Imports
national saving and investment identity10.4 The National Saving and Investment Identity
natural rate of unemployment8.4 What Causes Changes in Unemployment over the Long Run, 11.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation, 13.2 The Policy Implications of the Neoclassical Perspective
negative slopeAppendix A The Use of Mathematics in Principles of Economics
neoclassical determinants of growth19.1 The Diversity of Countries and Economies across the World
neoclassical economists11.1 Macroeconomic Perspectives on Demand and Supply
neoclassical model15.5 Pitfalls for Monetary Policy
neoclassical perspective13.1 The Building Blocks of Neoclassical Analysis
neoclassical zone11.6 Keynes’ Law and Say’s Law in the AD/AS Model
net national product (NNP)6.1 Measuring the Size of the Economy: Gross Domestic Product
net worth14.3 The Role of Banks, 15.2 Bank Regulation
nominal GDP6.2 Adjusting Nominal Values to Real Values, 15.5 Pitfalls for Monetary Policy
nominal interest rate9.4 The Confusion Over Inflation, 15.5 Pitfalls for Monetary Policy
nominal value6.2 Adjusting Nominal Values to Real Values
nondurable goods6.1 Measuring the Size of the Economy: Gross Domestic Product
Nontariff barriers21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
normal good3.2 Shifts in Demand and Supply for Goods and Services
normal goods5.4 Elasticity in Areas Other Than Price
normative statements2.3 Confronting Objections to the Economic Approach
North American Free Trade Agreement (NAFTA)19.5 Balance of Trade Concerns, 21.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions, 21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
O
open market operations15.3 How a Central Bank Executes Monetary Policy
opportunity cost2.1 How Individuals Make Choices Based on Their Budget Constraint, Introduction to Unemployment, 16.4 Exchange Rate Policies, 20.1 Absolute and Comparative Advantage, 20.2 What Happens When a Country Has an Absolute Advantage in All Goods, 21.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
out of the labor force8.1 How Economists Define and Compute Unemployment Rate
Oxfam International21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
P
payment system14.3 The Role of Banks
payroll tax17.2 Taxation
peak6.3 Tracking Real GDP over Time
pensions9.4 The Confusion Over Inflation
Per capita GDP9.1 Tracking Inflation, 10.5 The Pros and Cons of Trade Deficits and Surpluses
percentage change9.1 Tracking Inflation
perfect elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
perfect inelasticity5.2 Polar Cases of Elasticity and Constant Elasticity
Pew Research Center for People and the Press3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
Phillips curve12.3 The Phillips Curve, 13.2 The Policy Implications of the Neoclassical Perspective
physical capital7.3 Components of Economic Growth, 18.4 Fiscal Policy, Investment, and Economic Growth, 19.2 Improving Countries’ Standards of Living
Physical capital per person13.1 The Building Blocks of Neoclassical Analysis
pie chartAppendix A The Use of Mathematics in Principles of Economics
pie graphAppendix A The Use of Mathematics in Principles of Economics
Pierre Mohnen7.3 Components of Economic Growth
portfolio investment16.1 How the Foreign Exchange Market Works, 16.4 Exchange Rate Policies
positive slopeAppendix A The Use of Mathematics in Principles of Economics
positive statements2.3 Confronting Objections to the Economic Approach
potential GDP11.2 Building a Model of Aggregate Demand and Aggregate Supply, 12.1 Aggregate Demand in Keynesian Analysis, 12.3 The Phillips Curve, 13.1 The Building Blocks of Neoclassical Analysis, 15.4 Monetary Policy and Economic Outcomes, 15.5 Pitfalls for Monetary Policy, Appendix B The Expenditure-Output Model
price2.1 How Individuals Make Choices Based on Their Budget Constraint, 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.2 Shifts in Demand and Supply for Goods and Services
price ceiling3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency
price control3.5 Demand, Supply, and Efficiency
price controls3.4 Price Ceilings and Price Floors, 4.3 The Market System as an Efficient Mechanism for Information
Price elasticity5.1 Price Elasticity of Demand and Price Elasticity of Supply
price elasticity of demand5.1 Price Elasticity of Demand and Price Elasticity of Supply
price elasticity of supply5.1 Price Elasticity of Demand and Price Elasticity of Supply
price floor3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency
price level9.1 Tracking Inflation
private enterprise1.4 How To Organize Economies: An Overview of Economic Systems
private markets9.5 Indexing and Its Limitations
Producer Price Index (PPI)9.2 How to Measure Changes in the Cost of Living
producer surplus3.5 Demand, Supply, and Efficiency, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
production function7.2 Labor Productivity and Economic Growth
production possibilities frontier (PPF)2.2 The Production Possibilities Frontier and Social Choices
production possibility frontier (PPF)20.1 Absolute and Comparative Advantage
Productive efficiency2.2 The Production Possibilities Frontier and Social Choices
productivity20.2 What Happens When a Country Has an Absolute Advantage in All Goods
Productivity growth7.2 Labor Productivity and Economic Growth, 11.3 Shifts in Aggregate Supply
progressive tax17.2 Taxation
property rights7.1 The Relatively Recent Arrival of Economic Growth
proportional tax17.2 Taxation
protectionism21.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 21.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
purchasing power parity19.1 The Diversity of Countries and Economies across the World
purchasing power parity (PPP)6.4 Comparing GDP among Countries, 16.2 Demand and Supply Shifts in Foreign Exchange Markets
Q
quality/new goods bias9.2 How to Measure Changes in the Cost of Living
quantitative easing (QE)15.4 Monetary Policy and Economic Outcomes
quantity demanded3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 16.4 Exchange Rate Policies
quantity supplied3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 16.4 Exchange Rate Policies
R
race to the bottom21.3 Arguments in Support of Restricting Imports
rational expectations13.1 The Building Blocks of Neoclassical Analysis
real GDP6.2 Adjusting Nominal Values to Real Values, Introduction to the International Trade and Capital Flows, 10.5 The Pros and Cons of Trade Deficits and Surpluses, 12.1 Aggregate Demand in Keynesian Analysis, 13.1 The Building Blocks of Neoclassical Analysis, 15.5 Pitfalls for Monetary Policy, 15.5 Pitfalls for Monetary Policy, Appendix B The Expenditure-Output Model
real interest rate9.4 The Confusion Over Inflation
real value6.2 Adjusting Nominal Values to Real Values
recession6.3 Tracking Real GDP over Time, 8.2 Patterns of Unemployment, 11.1 Macroeconomic Perspectives on Demand and Supply, 11.4 Shifts in Aggregate Demand, 12.2 The Building Blocks of Keynesian Analysis, 15.5 Pitfalls for Monetary Policy, 18.2 Fiscal Policy and the Trade Balance, 19.3 Causes of Unemployment around the World
recessionary gap12.1 Aggregate Demand in Keynesian Analysis, Appendix B The Expenditure-Output Model
recognition lag17.6 Practical Problems with Discretionary Fiscal Policy
redistributions9.4 The Confusion Over Inflation, 9.4 The Confusion Over Inflation
regressive tax17.2 Taxation
relative wage coordination argument8.3 What Causes Changes in Unemployment over the Short Run
reserve requirement15.3 How a Central Bank Executes Monetary Policy
reserves14.3 The Role of Banks, 15.2 Bank Regulation, 15.3 How a Central Bank Executes Monetary Policy, 16.4 Exchange Rate Policies
revenue17.3 Federal Deficits and the National Debt
Ricardian equivalence18.3 How Government Borrowing Affects Private Saving
Richard Easterlin7.1 The Relatively Recent Arrival of Economic Growth
Robert Shiller9.4 The Confusion Over Inflation
Robert Solow13.3 Balancing Keynesian and Neoclassical Models
rule of law7.1 The Relatively Recent Arrival of Economic Growth
S
salary4.1 Demand and Supply at Work in Labor Markets
savings deposits14.2 Measuring Money: Currency, M1, and M2
Say’s law11.1 Macroeconomic Perspectives on Demand and Supply, 11.6 Keynes’ Law and Say’s Law in the AD/AS Model
Scarcity1.1 What Is Economics, and Why Is It Important?, 2.3 Confronting Objections to the Economic Approach
Sebastian Edwards19.5 Balance of Trade Concerns
Securitization14.3 The Role of Banks
service3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
services6.1 Measuring the Size of the Economy: Gross Domestic Product, 12.1 Aggregate Demand in Keynesian Analysis
shift in demand3.2 Shifts in Demand and Supply for Goods and Services
shift in supply3.2 Shifts in Demand and Supply for Goods and Services
short run aggregate supply (SRAS) curve11.2 Building a Model of Aggregate Demand and Aggregate Supply
shortage3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
shortages9.4 The Confusion Over Inflation
slope2.2 The Production Possibilities Frontier and Social Choices, Appendix A The Use of Mathematics in Principles of Economics
smart card14.2 Measuring Money: Currency, M1, and M2
Social Security Indexing Act of 19729.5 Indexing and Its Limitations
social surplus3.5 Demand, Supply, and Efficiency
soft peg16.4 Exchange Rate Policies
special economic zones (SEZ)7.3 Components of Economic Growth
specialization1.1 What Is Economics, and Why Is It Important?, 20.1 Absolute and Comparative Advantage
splitting up the value chain20.3 Intra-industry Trade between Similar Economies
stagflation11.3 Shifts in Aggregate Supply, 12.3 The Phillips Curve
standard of deferred payment14.1 Defining Money by Its Functions
standard of living6.5 How Well GDP Measures the Well-Being of Society
standardized employment budget17.5 Automatic Stabilizers
standards of living19.1 The Diversity of Countries and Economies across the World
sticky8.3 What Causes Changes in Unemployment over the Short Run
sticky wages and prices12.2 The Building Blocks of Keynesian Analysis
store of value14.1 Defining Money by Its Functions
straight-line demand curve5.1 Price Elasticity of Demand and Price Elasticity of Supply
structural unemployment8.4 What Causes Changes in Unemployment over the Long Run
structures6.1 Measuring the Size of the Economy: Gross Domestic Product
subprime loans14.3 The Role of Banks
subsidies21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
substitute3.2 Shifts in Demand and Supply for Goods and Services
substitution bias9.2 How to Measure Changes in the Cost of Living
sunk costs2.1 How Individuals Make Choices Based on Their Budget Constraint
supply3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 11.1 Macroeconomic Perspectives on Demand and Supply, Introduction to Exchange Rates and International Capital Flows
supply curve3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 3.2 Shifts in Demand and Supply for Goods and Services, 16.2 Demand and Supply Shifts in Foreign Exchange Markets, 18.4 Fiscal Policy, Investment, and Economic Growth, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
supply schedule3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
surplus3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 10.1 Measuring Trade Balances, 18.1 How Government Borrowing Affects Investment and the Trade Balance
surpluses9.4 The Confusion Over Inflation
T
T-account14.3 The Role of Banks
Tariffs20.4 The Benefits of Reducing Barriers to International Trade, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
tax11.4 Shifts in Aggregate Demand
tax incidence5.3 Elasticity and Pricing
Technological change7.2 Labor Productivity and Economic Growth
technology7.3 Components of Economic Growth, 19.2 Improving Countries’ Standards of Living
The Land of Funny Money9.4 The Confusion Over Inflation
the law of increasing opportunity cost2.2 The Production Possibilities Frontier and Social Choices
theory1.3 How Economists Use Theories and Models to Understand Economic Issues
tight monetary policy15.4 Monetary Policy and Economic Outcomes
time deposits14.2 Measuring Money: Currency, M1, and M2
time seriesAppendix A The Use of Mathematics in Principles of Economics
Tobin taxes16.4 Exchange Rate Policies
total surplus3.5 Demand, Supply, and Efficiency
trade balance6.1 Measuring the Size of the Economy: Gross Domestic Product
trade deficit6.1 Measuring the Size of the Economy: Gross Domestic Product, Introduction to the International Trade and Capital Flows, 19.5 Balance of Trade Concerns
trade surplus6.1 Measuring the Size of the Economy: Gross Domestic Product, Introduction to the International Trade and Capital Flows, 19.5 Balance of Trade Concerns
tradeoffs2.3 Confronting Objections to the Economic Approach
traditional economy1.4 How To Organize Economies: An Overview of Economic Systems
Transaction costs14.3 The Role of Banks
Treasury bills15.4 Monetary Policy and Economic Outcomes
Treasury bonds15.4 Monetary Policy and Economic Outcomes
trough6.3 Tracking Real GDP over Time
twin deficits18.3 How Government Borrowing Affects Private Saving
U
U.S. Census Bureau3.2 Shifts in Demand and Supply for Goods and Services
U.S. Department of Commerce10.1 Measuring Trade Balances
U.S. Patent and Trademark Office7.3 Components of Economic Growth
underemployed8.1 How Economists Define and Compute Unemployment Rate
underground economies1.4 How To Organize Economies: An Overview of Economic Systems
unemploymentIntroduction to the Aggregate Supply–Aggregate Demand Model, 11.5 How the AD/AS Model Incorporates Growth, Unemployment, and Inflation, 12.3 The Phillips Curve, Introduction to Money and Banking, 15.1 The Federal Reserve Banking System and Central Banks, 19.3 Causes of Unemployment around the World
unemployment rate8.1 How Economists Define and Compute Unemployment Rate, 15.4 Monetary Policy and Economic Outcomes
unilateral transfers10.1 Measuring Trade Balances
unit of account14.1 Defining Money by Its Functions
Unitary elasticities5.1 Price Elasticity of Demand and Price Elasticity of Supply
usury laws4.2 Demand and Supply in Financial Markets
utility2.1 How Individuals Make Choices Based on Their Budget Constraint
V
value chain20.3 Intra-industry Trade between Similar Economies
variableAppendix A The Use of Mathematics in Principles of Economics
velocity15.5 Pitfalls for Monetary Policy
W
wage4.1 Demand and Supply at Work in Labor Markets
wage elasticity of labor supply5.4 Elasticity in Areas Other Than Price
wages8.4 What Causes Changes in Unemployment over the Long Run, 9.1 Tracking Inflation, 9.4 The Confusion Over Inflation
World Trade Organization (WTO)20.4 The Benefits of Reducing Barriers to International Trade, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 21.3 Arguments in Support of Restricting Imports, 21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
Z
Zero elasticity5.2 Polar Cases of Elasticity and Constant Elasticity
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