Table of Content

Part I: Introduction To Economics 1. The Scope and Method of Economics 2. The Economic Problem: Scarcity and Choice 3. Demand, Supply, and Market Equilibrium 4. Demand and Supply Applications Part II: Concepts and Problems in Macroeconomics 5. Introduction to Macroeconomics 6. Measuring National Output and National Income 7. Unemployment, Inflation, and Long-Run Growth Part III: The Core of Macroeconomic Theory 8. Aggregate Expenditure and Equilibrium Output 9. The Government and Fiscal Policy 10. Money, the Federal Reserve, and the Interest Rate 11. The Determination of Aggregate Output, the Price Level, and the Interest Rate 12. Policy Effects and Cost Shocks in the AS/AD Model 13. The Labor Market in the Macroeconomy Part IV: Further Macroeconomics Issues 14. Financial Crises, Stabilization, and Deficits 15. Household and Firm Behavior in the Macroeconomy: A Further Look 16. Long-Run Growth 17. Alternative Views in Macroeconomics Part V: The World Economy 18. International Trade, Comparative Advantage, and Protectionism 19. Open-Economy Macroeconomics: The Balance of Payments and Exchange Rates 20. Economic Growth in Developing Economies Part VI: Methodology 21. Critical Thinking about Research

Salient Features

Spotlights Recent Research NEW! Chapter 3 uses behavioral economics to answer whether having rainy seasons increases a consumer's preference for tea. NEW! Chapter 6 looks at how imposing taxes on soda beverages affects consumption. NEW! Chapter 7 describes the importance of better maintenance practices in increasing profitability while curtailing capital investment. NEW! Chapter 14 describes recent research on how well recessions can be predicted. NEW! Chapter 20 looks at work that uses children's height in India to examine hunger and gender inequality. NEW! Chapter 21 (brand new) contains three boxes that examine the Moving to Opportunity program, control group and experimental economics, and the effects of minimum wage. A History of Excellence in Economic Content and Application News Analysis features real news articles from The Wall Street Journal, The New York Times, The Economist, and others, strategically integrated into the text. The authors have also added homework problems for News Analysis articles at the end of the chapter. Incorporation of international examples and applications includes discussion of: The many countries that contributed to creating the iPod (Chapter 1). How UPS is using technology to speed worldwide delivery (Chapter 7). How high speed trains in Europe benefit travelers, the environment, and the economies of communities served (Chapter 10). The world economy (Chapters 20 and 21). A three-tiered explanation of key concepts (Stories-Graphs-Equations) is presented. Each concept is presented in the context of a simple intuitive story often followed by a table or graph, and in some cases, an equation that presents the concept with a mathematical formula. UPDATED! End-of-chapter material delivers questions designed to help individuals learn course concepts and help instructors assess student performance.