Contents Note: Each chapter begins with a Preview and concludes with a Summary, Key Terms, Exercises, and an ACE Practice Test. 1. Economics: The World Around You Why Study Economics? The Definition of Economics The Economic Approach Economic Insight: "'Free' Air?" Economically Speaking: "Choice of Major, Years of College Influence Student Debt" Appendix to Chapter 1. Working with Graphs Reading Graphs Constructing a Graph Slopes 2. Choice, Opportunity Costs, and Specialization Opportunity Costs Specialization and Trade Economically Speaking: "Guns and Butter" 3. Markets, Demand and Supply, and the Price System Markets Demand Supply Equilibrium: Putting Demand and Supply Together Global Business Insight: "The Foreign Exchange Market" Economically Speaking: "A Sleuth for Landlords with Eviction in Mind" 4. The Market System and the Private Sector The Market System Households Business Firms The International Sector Linking the Sectors Economic Insight: "Adam Smith" Economic Insight: "The Successful Entrepreneur (Sometimes It's Better to Be Lucky Than Good)" Economical Speaking "Report: Ramsey Friend Sold Information to National Enquirer" 5. The Public Sector The Circular Flow The Role of Government in the Market System Overview of the United States Government Government in Other Economies Global Business Insight: "Government Creates a Market for Fishing Rights" Economically Speaking: "A Big "Nein" to Deutsche Telekom; Telecommunications: Germany Still Doesn't Have a Completely Open Market" II. Macroeconomic Basics 6. National Income Accounting Measures of Output and Income Nominal and Real Measures Flows of Income and Expenditures Economic Insight: "The Consumer Price Index" Economically Speaking: "Hiding in the Shadows: The Growth of the Underground Economy" 7. An Introduction to the Foreign Exchange Market and the Balance of Payments The Foreign Exchange Market The Balance of Payments Global Business Insight: "Active Trading Around the World" Global Business Insight: "The Euro" Economically Speaking: "High Gas Prices, Weak Euro Result in Room Availability, Less-Crowded Facilities at Popular U.S. National Parks" 8. Unemployment and Inflation Business Cycles Unemployment Inflation Global Business Insight: "High Unemployment in Europe" Economically Speaking: "Things Really Are Tight at Most Levels of Job Market" 9. Macroeconomic Equilibrium: Aggregate Demand and Supply Aggregate Demand, Aggregate Supply, and Business Cycles Factors That Influence Aggregate Demand The Aggregate Demand Curve Aggregate Supply Aggregate Demand and Supply Equilibrium Economic Insight: "How Lack of Information in the Short Run Affects Wages in the Long Run" Global Business Insight: "Oil and Aggregate Supply" Economically Speaking: "The Conference Board's Consumer Confidence Index Plummets Nearly 15 Points" 10. Aggregate Expenditures Consumption and Saving Investment Government Spending Net Exports The Aggregate Expenditures Function Economic Insight: "Permanent Income, Life Cycles, and Consumption" Economically Speaking: "U.S. Trade Deficit in 2002 Largest in History" Appendix to Chapter 10. An Algebraic Model of Aggregate Expenditures 11. Income and Expenditures Equilibrium Equilibrium Income and Expenditures Changes in Equilibrium Income and Expenditures Aggregate Expenditures and Aggregate Demand Economic Insight: "John Maynard Keynes" Economic Insight: "The Paradox of Thrift" Economically Speaking: "Mexico: Hostage to Its Neighbor's Troubles" Appendix to Chapter 11. An Algebraic Model of Income and Expenditures Equilibrium III. Macroeconomic Policy 12. Fiscal Policy Fiscal Policy and Aggregate Demand Fiscal Policy in the United States Fiscal Policy in Different Countries Economic Insight: "Supply-Side Economics and the Laffer Curve" Economic Insight: "The Taxpayer's Federal Government Credit Card Statement" Global Business Insight: "Value-Added Tax" Economically Speaking: "Brussels Takes Action Against France over Budget Deficit" Appendix to Chapter 12. An Algebraic Examination of the Balanced-Budget Change in Fiscal Policy 13. Money and Banking What Is Money? Banking Banks and the Money Supply Global Business Insight: "Islamic Banking" Economically Speaking: "They Love Our Money" 14. Monetary Policy The Federal Reserve System Implementing Monetary Policy Monetary Policy and Equilibrium Income Economic Insight: "What's on a 20-Dollar Bill?" Global Business Insight: "The European Central Bank" Economically Speaking: "Fed Leaves Rates Alone, but Message Needs Translation: Strange Statement Puzzles Economists" 15. Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles The Phillips Curve The Role of Expectations Credibility and Time Inconsistency Sources of Business Cycles The Link Between Monetary and Fiscal Policies Economic Insight: "The Natural Rate of Unemployment" Economic Insight: "Why Wages Don't Fall During Recessions" Economically Speaking: "War Worries Hurting U.S. Markets: Fed Chief Greenspan Warns of Further Interest Rate Cuts if Sluggishness Continues" 16. Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical Keynesian Economics Monetarist Economics New Classical Economics Comparison and Influence Economic Insight: "Milton Friedman" Economically Speaking: "The Ghosts of Christmas Past Haunt Economists" IV. Economic Growth and Development 17. Economic Growth Defining Economic Growth The Determinants of Growth Productivity Economic Insight: "Technological Advance: The Change in the Price of Light" Economically Speaking: "U.S. Updating Its Economic Measurements" 18. Development Economics The Developing World Obstacles to Growth Development Strategies Foreign Investment and Aid Economies in Transition from Socialism Global Business Insight: "Economic Development in the Americas" Economically Speaking: "Food Aid" 19. Globalization The Meaning of Globalization Globalization Controversy Globalization, Economic Growth, and Incomes Financial Crises and Globalization Global Business Insight: "The World Trade Organization" Economically Speaking: "Germans' Coziness Puts Nation at Risk" V. Issues in International Trade and Finance 20. World Trade Equilibrium An Overview of World Trade An Example of International Trade Equilibrium Sources of Comparative Advantage Global Business Insight: "The Dutch Disease" Economically Speaking: "China Trade Will Come Back to Haunt Us" 21. International Trade Restrictions Arguments for Protection Tools of Commercial Policy Preferential Trade Agreements Global Business Insight: "Smoot-Hawley Tariff" Economically Speaking: "Bull in a China Shop" 22. Exchange Rates and Financial Links Between Countries Past and Current Exchange-Rate Arrangements Fixed or Floating Exchange Rates Prices and Exchange Rates Interest Rates and Exchange Rates Global Business Insight: "The IMF and the World Bank" Economically Speaking: "The European Union"Michael Melvin is the author of 'Macroeconomics (Text only)', published 2004 under ISBN 9780618372546 and ISBN 0618372547.