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Table of Contents

    • About the Authors
    • Acknowledgments
    • Preface
    • 1Economics: The Study of Choice
      • 1.1Start Up: Economics in the News
      • 1.2Defining Economics
      • 1.3The Field of Economics
      • 1.4The Economists’ Tool Kit
      • 1.5Review and Practice
    • 2Confronting Scarcity: Choices in Production

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      • 2.1Start Up: An Attempt to Produce Safer Air Travel

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      • 2.2Factors of Production

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      • 2.3The Production Possibilities Curve

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      • 2.4Applications of the Production Possibilities Model

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      • 2.5Review and Practice

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    • 3Demand and Supply

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      • 3.1Start Up: Crazy for Coffee

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      • 3.2Demand

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      • 3.3Supply

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      • 3.4Demand, Supply, and Equilibrium

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      • 3.5Review and Practice

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    • 4Applications of Demand and Supply

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      • 4.1Start Up: A Composer Logs On

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      • 4.2Putting Demand and Supply to Work

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      • 4.3Government Intervention in Market Prices: Price Floors and Price Ceilings

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      • 4.4The Market for Health-Care Services

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      • 4.5Review and Practice

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    • 5Macroeconomics: The Big Picture

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      • 5.1Start Up: Economy Limps Along

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      • 5.2Growth of Real GDP and Business Cycles

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      • 5.3Price-Level Changes

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      • 5.4Unemployment

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      • 5.5Review and Practice

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    • 6Measuring Total Output and Income

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      • 6.1Start Up: The Lockup

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      • 6.2Measuring Total Output

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      • 6.3Measuring Total Income

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      • 6.4GDP and Economic Well-Being

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      • 6.5Review and Practice

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    • 7Aggregate Demand and Aggregate Supply

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      • 7.1Start Up: The Great Warning

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      • 7.2Aggregate Demand

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      • 7.3Aggregate Demand and Aggregate Supply: The Long Run and the Short Run

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      • 7.4Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium

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      • 7.5Review and Practice

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    • 8Economic Growth

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      • 8.1Start Up: How Important Is Economic Growth?

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      • 8.2The Significance of Economic Growth

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      • 8.3Growth and the Long-Run Aggregate Supply Curve

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      • 8.4Determinants of Economic Growth

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      • 8.5Review and Practice

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    • 9The Nature and Creation of Money

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      • 9.1Start Up: How Many Macks Does It Cost?

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      • 9.2What Is Money?

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      • 9.3The Banking System and Money Creation

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      • 9.4The Federal Reserve System

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      • 9.5Review and Practice

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    • 10Financial Markets and the Economy

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      • 10.1Start Up: Clamping Down on Money Growth

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      • 10.2The Bond and Foreign Exchange Markets

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      • 10.3Demand, Supply, and Equilibrium in the Money Market

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      • 10.4Review and Practice

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    • 11Monetary Policy and the Fed

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      • 11.1Start Up: The Fed’s Extraordinary Challenges in 2008

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      • 11.2Monetary Policy in the United States

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      • 11.3Problems and Controversies of Monetary Policy

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      • 11.4Monetary Policy and the Equation of Exchange

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      • 11.5Review and Practice

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    • 12Government and Fiscal Policy

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      • 12.1Start Up: A Massive Stimulus

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      • 12.2Government and the Economy

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      • 12.3The Use of Fiscal Policy to Stabilize the Economy

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      • 12.4Issues in Fiscal Policy

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      • 12.5Review and Practice

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    • 13Consumption and the Aggregate Expenditures Model

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      • 13.1Start Up: A Dismal Year for Retailers

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      • 13.2Determining the Level of Consumption

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      • 13.3The Aggregate Expenditures Model

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      • 13.4Aggregate Expenditures and Aggregate Demand

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      • 13.5Review and Practice

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    • 14Investment and Economic Activity

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      • 14.1Start Up: Jittery Firms Slash Investment

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      • 14.2The Role and Nature of Investment

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      • 14.3Determinants of Investment

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      • 14.4Investment and the Economy

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      • 14.5Review and Practice

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    • 15Net Exports and International Finance

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      • 15.1Start Up: Currency Crises Shake the World

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      • 15.2The International Sector: An Introduction

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      • 15.3International Finance

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      • 15.4Exchange Rate Systems

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      • 15.5Review and Practice

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    • 16Inflation and Unemployment

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      • 16.1Start Up: The Inflation/Unemployment Conundrum

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      • 16.2Relating Inflation and Unemployment

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      • 16.3Explaining Inflation–Unemployment Relationships

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      • 16.4Inflation and Unemployment in the Long Run

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      • 16.5Review and Practice

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    • 17A Brief History of Macroeconomic Thought and Policy

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      • 17.1Start Up: Three Revolutions in Macroeconomic Thought

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      • 17.2The Great Depression and Keynesian Economics

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      • 17.3Keynesian Economics in the 1960s and 1970s

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      • 17.4Macroeconomics for the 21st Century

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      • 17.5Review and Practice

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    • 18Inequality, Poverty, and Discrimination

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      • 18.1Start Up: Occupy Wall Street and the World

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      • 18.2Income Inequality

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      • 18.3The Economics of Poverty

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      • 18.4The Economics of Discrimination

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      • 18.5Review and Practice

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    • AGraphs in Economics

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      • A.1How to Construct and Interpret Graphs

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      • A.2Nonlinear Relationships and Graphs without Numbers

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      • A.3Using Graphs and Charts to Show Values of Variables

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    • BExtensions of the Aggregate Expenditures Model

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      • B.1The Algebra of Equilibrium

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      • B.2The Aggregate Expenditures Model and Fiscal Policy

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      • B.3Review and Practice

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