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Principles of Macroeconomics 3e

Index

Principles of Macroeconomics 3eIndex
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Table of contents
  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. Phillips 12.3 The Phillips Curve
Abhijit Bannerjee 19.2 Improving Countries’ Standards of Living
Abraham García 7.3 Components of Economic Growth
absolute advantage 20.1 Absolute and Comparative Advantage
Adam Smith 1.1 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 expectations 13.1 The Building Blocks of Neoclassical Analysis
adjustable-rate mortgage (ARM) 9.5 Indexing and Its Limitations
adverse selection of wage cuts argument 8.3 What Causes Changes in Unemployment over the Short Run
aggregate demand Introduction 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) curve 11.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate demand/aggregate supply (AD/AS) Introduction to Money and Banking
aggregate demand/aggregate supply model 11.2 Building a Model of Aggregate Demand and Aggregate Supply, 13.1 The Building Blocks of Neoclassical Analysis
aggregate expenditure function Appendix B The Expenditure-Output Model
aggregate expenditure line Appendix B The Expenditure-Output Model
aggregate expenditure schedule Appendix B The Expenditure-Output Model
aggregate expenditures Appendix B The Expenditure-Output Model
aggregate production function 7.2 Labor Productivity and Economic Growth, 7.3 Components of Economic Growth, 7.4 Economic Convergence
aggregate supply Introduction 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) curve 11.2 Building a Model of Aggregate Demand and Aggregate Supply
aggregate supply curve 13.2 The Policy Implications of the Neoclassical Perspective
Alexander Gerschenkron 7.4 Economic Convergence
Alfred Marshall 3.5 Demand, Supply, and Efficiency
Allocative efficiency 2.2 The Production Possibilities Frontier and Social Choices
American Recovery and Reinvestment Act of 2009 12.2 The Building Blocks of Keynesian Analysis
Anti-dumping laws 21.3 Arguments in Support of Restricting Imports
appreciating 16.1 How the Foreign Exchange Market Works
arbitrage 16.2 Demand and Supply Shifts in Foreign Exchange Markets
Asian Financial Crisis 19.5 Balance of Trade Concerns
asset 14.3 The Role of Banks
asset-liability time mismatch 14.3 The Role of Banks
assets 15.2 Bank Regulation
automatic stabilizers 17.5 Automatic Stabilizers, 19.3 Causes of Unemployment around the World
B
balance of payments 10.3 Trade Balances and Flows of Financial Capital
balance of trade Introduction 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 sheet 14.3 The Role of Banks
balanced budget 17.1 Government Spending, 17.7 The Question of a Balanced Budget
bank capital 14.3 The Role of Banks, 15.2 Bank Regulation
Bank regulation 15.2 Bank Regulation
bank run 15.2 Bank Regulation
bankrupt 16.3 Macroeconomic Effects of Exchange Rates
bar graph Appendix A The Use of Mathematics in Principles of Economics
Barter 14.1 Defining Money by Its Functions
base year 9.1 Tracking Inflation
basic quantity equation of money 15.5 Pitfalls for Monetary Policy
basket of goods and services 9.1 Tracking Inflation
bonds 9.5 Indexing and Its Limitations, 14.3 The Role of Banks, 15.3 How a Central Bank Executes Monetary Policy
budget constraint 2.1 How Individuals Make Choices Based on Their Budget Constraint
budget deficit 17.1 Government Spending
budget surplus 17.1 Government Spending
Bureau of Economic Analysis (BEA) 10.1 Measuring Trade Balances
Bureau of Labor Statistics 6.5 How Well GDP Measures the Well-Being of Society
business confidence 11.4 Shifts in Aggregate Demand
business cycle 6.3 Tracking Real GDP over Time
C
capital deepening 7.3 Components of Economic Growth
central bank 15.1 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 paribus 3.2 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 diagram 1.3 How Economists Use Theories and Models to Understand Economic Issues
coins and currency in circulation 14.2 Measuring Money: Currency, M1, and M2
command economy 1.4 How To Organize Economies: An Overview of Economic Systems
commodity money 14.1 Defining Money by Its Functions
Commodity-backed currencies 14.1 Defining Money by Its Functions
common markets 21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
comparative advantage 1.1 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
complements 3.2 Shifts in Demand and Supply for Goods and Services
compound growth rate 7.2 Labor Productivity and Economic Growth
Constant unitary elasticity 5.2 Polar Cases of Elasticity and Constant Elasticity
consumer confidence 11.4 Shifts in Aggregate Demand
Consumer Price Index (CPI) 9.2 How to Measure Changes in the Cost of Living
consumer surplus 3.5 Demand, Supply, and Efficiency, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
consumption budget constraint 2.2 The Production Possibilities Frontier and Social Choices
consumption demand 6.1 Measuring the Size of the Economy: Gross Domestic Product
consumption function Appendix B The Expenditure-Output Model
contractionary fiscal policy 12.3 The Phillips Curve, 17.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
contractionary monetary policy 15.4 Monetary Policy and Economic Outcomes, 16.4 Exchange Rate Policies, 18.4 Fiscal Policy, Investment, and Economic Growth
contractual rights 7.1 The Relatively Recent Arrival of Economic Growth
convergence 7.4 Economic Convergence
converging economy 19.4 Causes of Inflation in Various Countries and Regions
coordination argument 12.2 The Building Blocks of Keynesian Analysis
core competency 1.1 What Is Economics, and Why Is It Important?
core inflation index 9.2 How to Measure Changes in the Cost of Living
corporate income tax 17.2 Taxation
cost 2.2 The Production Possibilities Frontier and Social Choices
cost of living 9.2 How to Measure Changes in the Cost of Living
cost-of-living adjustments (COLAs) 9.5 Indexing and Its Limitations
countercyclical 15.4 Monetary Policy and Economic Outcomes
COVID-19 pandemic 19.3 Causes of Unemployment around the World
credit card 14.2 Measuring Money: Currency, M1, and M2
credit union 14.3 The Role of Banks
cross-price elasticity of demand 5.4 Elasticity in Areas Other Than Price
crowding out 17.6 Practical Problems with Discretionary Fiscal Policy, 18.4 Fiscal Policy, Investment, and Economic Growth
current account balance 10.1 Measuring Trade Balances
cyclical unemployment 8.3 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 Ricardo 20.1 Absolute and Comparative Advantage
deadweight loss 3.5 Demand, Supply, and Efficiency
dealers 16.1 How the Foreign Exchange Market Works
debit card 14.2 Measuring Money: Currency, M1, and M2
deficit 18.1 How Government Borrowing Affects Investment and the Trade Balance
deflation 9.3 How the U.S. and Other Countries Experience Inflation, 15.5 Pitfalls for Monetary Policy
demand 3.1 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 diagram 3.5 Demand, Supply, and Efficiency
demand and supply models 4.3 The Market System as an Efficient Mechanism for Information
demand curve 3.1 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 deposits 14.2 Measuring Money: Currency, M1, and M2
demand schedule 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
deposit insurance 15.2 Bank Regulation
depository institutions 14.3 The Role of Banks
depreciating 16.1 How the Foreign Exchange Market Works
depreciation 6.1 Measuring the Size of the Economy: Gross Domestic Product
depression 6.3 Tracking Real GDP over Time, 8.2 Patterns of Unemployment
direct investment 16.4 Exchange Rate Policies
discount rate 15.3 How a Central Bank Executes Monetary Policy
Discouraged workers 8.1 How Economists Define and Compute Unemployment Rate
discretionary fiscal policy 17.5 Automatic Stabilizers, 19.3 Causes of Unemployment around the World
disposable income 12.1 Aggregate Demand in Keynesian Analysis
disruptive market change 21.5 The Tradeoffs of Trade Policy
diversify 14.3 The Role of Banks
division of labor 1.1 What Is Economics, and Why Is It Important?, 20.3 Intra-industry Trade between Similar Economies
dollarize 16.1 How the Foreign Exchange Market Works
double coincidence of wants 14.1 Defining Money by Its Functions
double counting 6.1 Measuring the Size of the Economy: Gross Domestic Product
Dow Jones 15.5 Pitfalls for Monetary Policy
dumping 20.4 The Benefits of Reducing Barriers to International Trade, 21.3 Arguments in Support of Restricting Imports
durable goods 6.1 Measuring the Size of the Economy: Gross Domestic Product
E
East Asian Tigers 19.2 Improving Countries’ Standards of Living
economic efficiency 2.3 Confronting Objections to the Economic Approach
economic growth Introduction to Money and Banking
economic surplus 3.5 Demand, Supply, and Efficiency
economic unions 21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
Economics 1.1 What Is Economics, and Why Is It Important?
economies of scale 1.1 What Is Economics, and Why Is It Important?, 20.3 Intra-industry Trade between Similar Economies
efficiency 3.5 Demand, Supply, and Efficiency
Efficiency wage theory 8.3 What Causes Changes in Unemployment over the Short Run
elastic demand 5.1 Price Elasticity of Demand and Price Elasticity of Supply
elastic supply 5.1 Price Elasticity of Demand and Price Elasticity of Supply
Elasticity Introduction to Elasticity
elasticity of savings 5.4 Elasticity in Areas Other Than Price
Employment Cost Index 9.2 How to Measure Changes in the Cost of Living
equilibrium 3.1 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 rate 16.2 Demand and Supply Shifts in Foreign Exchange Markets
equilibrium price 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
equilibrium quantity 3.1 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 tax 17.2 Taxation
Esther Duflo 19.2 Improving Countries’ Standards of Living
European Union 21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
European Union (EU) 3.4 Price Ceilings and Price Floors
excess demand 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
excess reserves 15.5 Pitfalls for Monetary Policy
excess supply 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
exchange rate 6.4 Comparing GDP among Countries, Introduction to Exchange Rates and International Capital Flows, 18.2 Fiscal Policy and the Trade Balance
exchange rates 15.5 Pitfalls for Monetary Policy
excise tax 17.2 Taxation
expansionary fiscal policy 12.3 The Phillips Curve, 17.4 Using Fiscal Policy to Fight Recession, Unemployment, and Inflation
expansionary monetary policy 15.4 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 inflation 13.2 The Policy Implications of the Neoclassical Perspective
expenditure multiplier 12.2 The Building Blocks of Keynesian Analysis
expenditure-output model Appendix B The Expenditure-Output Model
export 20.2 What Happens When a Country Has an Absolute Advantage in All Goods
Exports 1.4 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 GDP 10.2 Trade Balances in Historical and International Context
F
factors of production 3.2 Shifts in Demand and Supply for Goods and Services
Federal Deposit Insurance Corporation (FDIC) 15.2 Bank Regulation
federal funds rate 15.4 Monetary Policy and Economic Outcomes
Federal Open Market Committee (FOMC) 15.3 How a Central Bank Executes Monetary Policy
Federal Reserve 15.1 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 Bank 14.2 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 money 14.1 Defining Money by Its Functions
final goods and services 6.1 Measuring the Size of the Economy: Gross Domestic Product
financial capital 4.2 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 market 10.4 The National Saving and Investment Identity
financial capital markets 17.6 Practical Problems with Discretionary Fiscal Policy, 18.1 How Government Borrowing Affects Investment and the Trade Balance
financial intermediary 14.3 The Role of Banks
firm 2.2 The Production Possibilities Frontier and Social Choices, 3.2 Shifts in Demand and Supply for Goods and Services
firms 16.1 How the Foreign Exchange Market Works
fiscal policy 1.2 Microeconomics and Macroeconomics, Introduction to Government Budgets and Fiscal Policy, 19.3 Causes of Unemployment around the World
floating exchange rate 16.4 Exchange Rate Policies
Foreign direct investment (FDI) 16.1 How the Foreign Exchange Market Works
foreign exchange market 16.1 How the Foreign Exchange Market Works, 16.2 Demand and Supply Shifts in Foreign Exchange Markets
foreign financial capital 10.4 The National Saving and Investment Identity
foreign investment capital 16.3 Macroeconomic Effects of Exchange Rates
free trade 21.3 Arguments in Support of Restricting Imports
free trade agreements 21.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally
frictional unemployment 8.4 What Causes Changes in Unemployment over the Long Run
full-employment GDP 11.2 Building a Model of Aggregate Demand and Aggregate Supply
function Appendix A The Use of Mathematics in Principles of Economics
G
gain from trade 20.1 Absolute and Comparative Advantage
GDP 16.1 How the Foreign Exchange Market Works, 16.2 Demand and Supply Shifts in Foreign Exchange Markets
GDP deflator 6.2 Adjusting Nominal Values to Real Values, 9.2 How to Measure Changes in the Cost of Living
GDP per capita 6.4 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
globalization 1.4 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
good 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
goods and services market 1.3 How Economists Use Theories and Models to Understand Economic Issues
Great Depression 6.3 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 Recession 6.1 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
gross domestic product (GDP) 6.1 Measuring the Size of the Economy: Gross Domestic Product
Gross domestic product (GDP) 1.4 How To Organize Economies: An Overview of Economic Systems
gross national product (GNP) 6.1 Measuring the Size of the Economy: Gross Domestic Product
growth consensus 19.2 Improving Countries’ Standards of Living
growth rate Appendix A The Use of Mathematics in Principles of Economics
H
hard peg 16.4 Exchange Rate Policies
Head Start program 18.4 Fiscal Policy, Investment, and Economic Growth
hedge 16.1 How the Foreign Exchange Market Works
hidden unemployment 8.1 How Economists Define and Compute Unemployment Rate
High-income countries 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 21.3 Arguments in Support of Restricting Imports
Human capital 7.2 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
hyperinflation 9.3 How the U.S. and Other Countries Experience Inflation
I
implementation lag 17.6 Practical Problems with Discretionary Fiscal Policy
implicit contract 8.3 What Causes Changes in Unemployment over the Short Run
import quotas 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
Imports 1.4 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 demand 5.4 Elasticity in Areas Other Than Price
income payments 10.1 Measuring Trade Balances
index number 9.1 Tracking Inflation
indexed 9.5 Indexing and Its Limitations
individual income tax 17.2 Taxation
Industrial Revolution 7.1 The Relatively Recent Arrival of Economic Growth
inelastic demand 5.1 Price Elasticity of Demand and Price Elasticity of Supply
inelastic supply 5.1 Price Elasticity of Demand and Price Elasticity of Supply
infant industry argument 19.5 Balance of Trade Concerns, 21.3 Arguments in Support of Restricting Imports
inferior good 3.2 Shifts in Demand and Supply for Goods and Services, 5.4 Elasticity in Areas Other Than Price
Infinite elasticity 5.2 Polar Cases of Elasticity and Constant Elasticity
Inflation Introduction 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 rate 15.4 Monetary Policy and Economic Outcomes
inflation targeting 15.5 Pitfalls for Monetary Policy
inflationary gap 12.1 Aggregate Demand in Keynesian Analysis, Appendix B The Expenditure-Output Model
infrastructure 7.3 Components of Economic Growth, 17.7 The Question of a Balanced Budget
innovation 7.2 Labor Productivity and Economic Growth
inputs 3.2 Shifts in Demand and Supply for Goods and Services
insider-outsider model 8.3 What Causes Changes in Unemployment over the Short Run
interbank market 16.1 How the Foreign Exchange Market Works
interest rate 4.2 Demand and Supply in Financial Markets, 12.1 Aggregate Demand in Keynesian Analysis
interest rates 15.1 The Federal Reserve Banking System and Central Banks, 15.4 Monetary Policy and Economic Outcomes
intermediate goods 6.1 Measuring the Size of the Economy: Gross Domestic Product
intermediate zone 11.6 Keynes’ Law and Say’s Law in the AD/AS Model
international capital flows 16.4 Exchange Rate Policies
international financial flows 16.4 Exchange Rate Policies
International Price Index 9.2 How to Measure Changes in the Cost of Living
international trade 16.3 Macroeconomic Effects of Exchange Rates, 20.3 Intra-industry Trade between Similar Economies, 21.5 The Tradeoffs of Trade Policy
intertemporal choices 2.3 Confronting Objections to the Economic Approach
intertemporal decision making 4.2 Demand and Supply in Financial Markets
intra-industry trade 20.3 Intra-industry Trade between Similar Economies
invention 7.2 Labor Productivity and Economic Growth
inventories 6.1 Measuring the Size of the Economy: Gross Domestic Product
Investment demand 6.1 Measuring the Size of the Economy: Gross Domestic Product
Investment expenditure 6.1 Measuring the Size of the Economy: Gross Domestic Product, 12.1 Aggregate Demand in Keynesian Analysis
investment function Appendix B The Expenditure-Output Model
investment income 10.3 Trade Balances and Flows of Financial Capital
invisible hand 2.3 Confronting Objections to the Economic Approach
involuntary unemployment 8.3 What Causes Changes in Unemployment over the Short Run
J
James Tobin 16.4 Exchange Rate Policies
Jan Luiten van Zanden 7.1 The Relatively Recent Arrival of Economic Growth
Jean-Baptiste Say 11.1 Macroeconomic Perspectives on Demand and Supply
John Maynard Keynes 1.3 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 input 5.3 Elasticity and Pricing
Keynes’ law 11.1 Macroeconomic Perspectives on Demand and Supply, 11.6 Keynes’ Law and Say’s Law in the AD/AS Model
Keynesian aggregate supply curve 15.4 Monetary Policy and Economic Outcomes
Keynesian cross diagram Appendix B The Expenditure-Output Model
Keynesian economic model 19.3 Causes of Unemployment around the World
Keynesian economics 13.1 The Building Blocks of Neoclassical Analysis, 13.3 Balancing Keynesian and Neoclassical Models
Keynesian macroeconomic policy 17.7 The Question of a Balanced Budget
Keynesian zone 11.6 Keynes’ Law and Say’s Law in the AD/AS Model
L
labor force participation rate 8.1 How Economists Define and Compute Unemployment Rate
labor market 1.3 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 markets 9.4 The Confusion Over Inflation
Labor productivity 7.2 Labor Productivity and Economic Growth
law of demand 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 4.2 Demand and Supply in Financial Markets
law of diminishing marginal utility 2.1 How Individuals Make Choices Based on Their Budget Constraint
law of diminishing returns 7.4 Economic Convergence
law of supply 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
legislative lag 17.6 Practical Problems with Discretionary Fiscal Policy
lender of last resort 15.2 Bank Regulation
level of trade 10.6 The Difference between Level of Trade and the Trade Balance
leverage cycle 15.5 Pitfalls for Monetary Policy
liability 14.3 The Role of Banks
line graphs Appendix A The Use of Mathematics in Principles of Economics
Liquidity 14.2 Measuring Money: Currency, M1, and M2
living wage 4.1 Demand and Supply at Work in Labor Markets
loan market 14.3 The Role of Banks
long run aggregate supply (LRAS) curve 11.2 Building a Model of Aggregate Demand and Aggregate Supply
loose monetary policy 15.4 Monetary Policy and Economic Outcomes
low-income countries 8.2 Patterns of Unemployment, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers, 21.3 Arguments in Support of Restricting Imports
M
M1 15.5 Pitfalls for Monetary Policy
M1 money supply 14.2 Measuring Money: Currency, M1, and M2
M2 15.5 Pitfalls for Monetary Policy
M2 money supply 14.2 Measuring Money: Currency, M1, and M2
macro economy 8.3 What Causes Changes in Unemployment over the Short Run
macroeconomic externality 12.2 The Building Blocks of Keynesian Analysis
Macroeconomics 1.2 Microeconomics and Macroeconomics
marginal analysis 2.1 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 rates 17.2 Taxation
market 1.4 How To Organize Economies: An Overview of Economic Systems
market economy 1.4 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
median Appendix A The Use of Mathematics in Principles of Economics
medium of exchange 14.1 Defining Money by Its Functions
menu costs 12.2 The Building Blocks of Keynesian Analysis
merchandise trade balance 10.1 Measuring Trade Balances
merged currency 16.4 Exchange Rate Policies
Microeconomics 1.2 Microeconomics and Macroeconomics
Midpoint Formula 5.1 Price Elasticity of Demand and Price Elasticity of Supply
Midpoint Method 5.1 Price Elasticity of Demand and Price Elasticity of Supply, 5.1 Price Elasticity of Demand and Price Elasticity of Supply
Milton Friedman 13.2 The Policy Implications of the Neoclassical Perspective, 15.5 Pitfalls for Monetary Policy, 16.4 Exchange Rate Policies
minimum wage 4.1 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
model 1.3 How Economists Use Theories and Models to Understand Economic Issues
modern economic growth 7.1 The Relatively Recent Arrival of Economic Growth
monetary policy 1.2 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
money 14.1 Defining Money by Its Functions
money market funds 14.2 Measuring Money: Currency, M1, and M2
money multiplier 15.5 Pitfalls for Monetary Policy
money multiplier formula 14.4 How Banks Create Money
multiplier effect Appendix B The Expenditure-Output Model
N
Nasdaq 15.5 Pitfalls for Monetary Policy
National Bureau of Economic Research 19.5 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 debt 17.3 Federal Deficits and the National Debt
national income 6.1 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 argument 21.3 Arguments in Support of Restricting Imports
national saving and investment identity 10.4 The National Saving and Investment Identity
natural rate of unemployment 8.4 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 slope Appendix A The Use of Mathematics in Principles of Economics
neoclassical determinants of growth 19.1 The Diversity of Countries and Economies across the World
neoclassical economists 11.1 Macroeconomic Perspectives on Demand and Supply
neoclassical model 15.5 Pitfalls for Monetary Policy
neoclassical perspective 13.1 The Building Blocks of Neoclassical Analysis
neoclassical zone 11.6 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 worth 14.3 The Role of Banks, 15.2 Bank Regulation
nominal GDP 6.2 Adjusting Nominal Values to Real Values, 15.5 Pitfalls for Monetary Policy
nominal interest rate 9.4 The Confusion Over Inflation, 15.5 Pitfalls for Monetary Policy
nominal value 6.2 Adjusting Nominal Values to Real Values
nondurable goods 6.1 Measuring the Size of the Economy: Gross Domestic Product
Nontariff barriers 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
normal good 3.2 Shifts in Demand and Supply for Goods and Services
normal goods 5.4 Elasticity in Areas Other Than Price
normative statements 2.3 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 operations 15.3 How a Central Bank Executes Monetary Policy
opportunity cost 2.1 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 force 8.1 How Economists Define and Compute Unemployment Rate
Oxfam International 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
P
payment system 14.3 The Role of Banks
payroll tax 17.2 Taxation
peak 6.3 Tracking Real GDP over Time
pensions 9.4 The Confusion Over Inflation
per capita GDP 10.5 The Pros and Cons of Trade Deficits and Surpluses
Per capita GDP 9.1 Tracking Inflation
percentage change 9.1 Tracking Inflation
perfect elasticity 5.2 Polar Cases of Elasticity and Constant Elasticity
perfect inelasticity 5.2 Polar Cases of Elasticity and Constant Elasticity
Pew Research Center for People and the Press 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
Phillips curve 12.3 The Phillips Curve, 13.2 The Policy Implications of the Neoclassical Perspective
physical capital 7.3 Components of Economic Growth, 18.4 Fiscal Policy, Investment, and Economic Growth, 19.2 Improving Countries’ Standards of Living
Physical capital per person 13.1 The Building Blocks of Neoclassical Analysis
pie chart Appendix A The Use of Mathematics in Principles of Economics
pie graph Appendix A The Use of Mathematics in Principles of Economics
Pierre Mohnen 7.3 Components of Economic Growth
portfolio investment 16.1 How the Foreign Exchange Market Works, 16.4 Exchange Rate Policies
positive slope Appendix A The Use of Mathematics in Principles of Economics
positive statements 2.3 Confronting Objections to the Economic Approach
potential GDP 11.2 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
price 2.1 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 ceiling 3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency
price control 3.5 Demand, Supply, and Efficiency
price controls 3.4 Price Ceilings and Price Floors, 4.3 The Market System as an Efficient Mechanism for Information
Price elasticity 5.1 Price Elasticity of Demand and Price Elasticity of Supply
price elasticity of demand 5.1 Price Elasticity of Demand and Price Elasticity of Supply
price elasticity of supply 5.1 Price Elasticity of Demand and Price Elasticity of Supply
price floor 3.4 Price Ceilings and Price Floors, 3.5 Demand, Supply, and Efficiency
price level 9.1 Tracking Inflation
private enterprise 1.4 How To Organize Economies: An Overview of Economic Systems
private markets 9.5 Indexing and Its Limitations
Producer Price Index (PPI) 9.2 How to Measure Changes in the Cost of Living
producer surplus 3.5 Demand, Supply, and Efficiency, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
production function 7.2 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 efficiency 2.2 The Production Possibilities Frontier and Social Choices
productivity 20.2 What Happens When a Country Has an Absolute Advantage in All Goods
Productivity growth 7.2 Labor Productivity and Economic Growth, 11.3 Shifts in Aggregate Supply
progressive tax 17.2 Taxation
property rights 7.1 The Relatively Recent Arrival of Economic Growth
proportional tax 17.2 Taxation
protectionism 21.1 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 parity 19.1 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 bias 9.2 How to Measure Changes in the Cost of Living
quantitative easing (QE) 15.4 Monetary Policy and Economic Outcomes
quantity demanded 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 16.4 Exchange Rate Policies
quantity supplied 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services, 16.4 Exchange Rate Policies
R
race to the bottom 21.3 Arguments in Support of Restricting Imports
rational expectations 13.1 The Building Blocks of Neoclassical Analysis
real GDP 6.2 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 rate 9.4 The Confusion Over Inflation
real value 6.2 Adjusting Nominal Values to Real Values
recession 6.3 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 gap 12.1 Aggregate Demand in Keynesian Analysis, Appendix B The Expenditure-Output Model
recognition lag 17.6 Practical Problems with Discretionary Fiscal Policy
redistributions 9.4 The Confusion Over Inflation, 9.4 The Confusion Over Inflation
regressive tax 17.2 Taxation
relative wage coordination argument 8.3 What Causes Changes in Unemployment over the Short Run
reserve requirement 15.3 How a Central Bank Executes Monetary Policy
reserves 14.3 The Role of Banks, 15.2 Bank Regulation, 15.3 How a Central Bank Executes Monetary Policy, 16.4 Exchange Rate Policies
revenue 17.3 Federal Deficits and the National Debt
Ricardian equivalence 18.3 How Government Borrowing Affects Private Saving
Richard Easterlin 7.1 The Relatively Recent Arrival of Economic Growth
Robert Shiller 9.4 The Confusion Over Inflation
Robert Solow 13.3 Balancing Keynesian and Neoclassical Models
rule of law 7.1 The Relatively Recent Arrival of Economic Growth
S
salary 4.1 Demand and Supply at Work in Labor Markets
savings deposits 14.2 Measuring Money: Currency, M1, and M2
Say’s law 11.1 Macroeconomic Perspectives on Demand and Supply, 11.6 Keynes’ Law and Say’s Law in the AD/AS Model
Scarcity 1.1 What Is Economics, and Why Is It Important?, 2.3 Confronting Objections to the Economic Approach
Sebastian Edwards 19.5 Balance of Trade Concerns
Securitization 14.3 The Role of Banks
service 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
services 6.1 Measuring the Size of the Economy: Gross Domestic Product, 12.1 Aggregate Demand in Keynesian Analysis
shift in demand 3.2 Shifts in Demand and Supply for Goods and Services
shift in supply 3.2 Shifts in Demand and Supply for Goods and Services
short run aggregate supply (SRAS) curve 11.2 Building a Model of Aggregate Demand and Aggregate Supply
shortage 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
shortages 9.4 The Confusion Over Inflation
slope 2.2 The Production Possibilities Frontier and Social Choices, Appendix A The Use of Mathematics in Principles of Economics
smart card 14.2 Measuring Money: Currency, M1, and M2
Social Security Indexing Act of 1972 9.5 Indexing and Its Limitations
social surplus 3.5 Demand, Supply, and Efficiency
soft peg 16.4 Exchange Rate Policies
special economic zones (SEZ) 7.3 Components of Economic Growth
specialization 1.1 What Is Economics, and Why Is It Important?, 20.1 Absolute and Comparative Advantage
splitting up the value chain 20.3 Intra-industry Trade between Similar Economies
stagflation 11.3 Shifts in Aggregate Supply, 12.3 The Phillips Curve
standard of deferred payment 14.1 Defining Money by Its Functions
standard of living 6.5 How Well GDP Measures the Well-Being of Society
standardized employment budget 17.5 Automatic Stabilizers
standards of living 19.1 The Diversity of Countries and Economies across the World
sticky 8.3 What Causes Changes in Unemployment over the Short Run
sticky wages and prices 12.2 The Building Blocks of Keynesian Analysis
store of value 14.1 Defining Money by Its Functions
straight-line demand curve 5.1 Price Elasticity of Demand and Price Elasticity of Supply
structural unemployment 8.4 What Causes Changes in Unemployment over the Long Run
structures 6.1 Measuring the Size of the Economy: Gross Domestic Product
subprime loans 14.3 The Role of Banks
subsidies 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
substitute 3.2 Shifts in Demand and Supply for Goods and Services
substitution bias 9.2 How to Measure Changes in the Cost of Living
sunk costs 2.1 How Individuals Make Choices Based on Their Budget Constraint
supply 3.1 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 curve 3.1 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 schedule 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
surplus 3.1 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
surpluses 9.4 The Confusion Over Inflation
T
T-account 14.3 The Role of Banks
Tariffs 20.4 The Benefits of Reducing Barriers to International Trade, 21.1 Protectionism: An Indirect Subsidy from Consumers to Producers
tax 11.4 Shifts in Aggregate Demand
tax incidence 5.3 Elasticity and Pricing
Technological change 7.2 Labor Productivity and Economic Growth
technology 7.3 Components of Economic Growth, 19.2 Improving Countries’ Standards of Living
The Land of Funny Money 9.4 The Confusion Over Inflation
the law of increasing opportunity cost 2.2 The Production Possibilities Frontier and Social Choices
theory 1.3 How Economists Use Theories and Models to Understand Economic Issues
tight monetary policy 15.4 Monetary Policy and Economic Outcomes
time deposits 14.2 Measuring Money: Currency, M1, and M2
time series Appendix A The Use of Mathematics in Principles of Economics
Tobin taxes 16.4 Exchange Rate Policies
total surplus 3.5 Demand, Supply, and Efficiency
trade balance 6.1 Measuring the Size of the Economy: Gross Domestic Product
trade deficit 6.1 Measuring the Size of the Economy: Gross Domestic Product, Introduction to the International Trade and Capital Flows, 19.5 Balance of Trade Concerns
trade surplus 6.1 Measuring the Size of the Economy: Gross Domestic Product, Introduction to the International Trade and Capital Flows, 19.5 Balance of Trade Concerns
tradeoffs 2.3 Confronting Objections to the Economic Approach
traditional economy 1.4 How To Organize Economies: An Overview of Economic Systems
Transaction costs 14.3 The Role of Banks
Treasury bills 15.4 Monetary Policy and Economic Outcomes
Treasury bonds 15.4 Monetary Policy and Economic Outcomes
trough 6.3 Tracking Real GDP over Time
twin deficits 18.3 How Government Borrowing Affects Private Saving
U
U.S. Census Bureau 3.2 Shifts in Demand and Supply for Goods and Services
U.S. Department of Commerce 10.1 Measuring Trade Balances
U.S. Patent and Trademark Office 7.3 Components of Economic Growth
underemployed 8.1 How Economists Define and Compute Unemployment Rate
underground economies 1.4 How To Organize Economies: An Overview of Economic Systems
unemployment 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, 19.3 Causes of Unemployment around the World
unemployment rate 8.1 How Economists Define and Compute Unemployment Rate, 15.4 Monetary Policy and Economic Outcomes
unilateral transfers 10.1 Measuring Trade Balances
unit of account 14.1 Defining Money by Its Functions
Unitary elasticities 5.1 Price Elasticity of Demand and Price Elasticity of Supply
usury laws 4.2 Demand and Supply in Financial Markets
utility 2.1 How Individuals Make Choices Based on Their Budget Constraint
V
value chain 20.3 Intra-industry Trade between Similar Economies
variable Appendix A The Use of Mathematics in Principles of Economics
velocity 15.5 Pitfalls for Monetary Policy
W
wage 4.1 Demand and Supply at Work in Labor Markets
wage elasticity of labor supply 5.4 Elasticity in Areas Other Than Price
wages 8.4 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 elasticity 5.2 Polar Cases of Elasticity and Constant Elasticity
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