Errata & Additions
In Concept Problem #14.6, the word “relatively” was added so that it now reads: "T/F: When Sheldon and Amy are maximizing their utility, Sheldon will be consuming relatively more ham than Amy, and Amy will be consuming more cheese than Sheldon."
In Numerical Problem #1, the word “graph” was changed to “table.”
In Numerical Problem #5, part “d” was removed because it asked for the same information that part “b” asked for.
Section 16.3: The subheading for “Tax and Transfer Policy” was fixed.
In “Case in Point: Hidden Figures—GDP Surprises in the COVID-19 Recession,” in the third paragraph, “nondurables” was corrected to “durables” in the following sentence: “Particularly telling was the behavior of consumer durables, which, after an initial decline, exploded to far beyond pre-pandemic levels.”
Learning objective #2 had the words “GNP or” removed so that it now reads: “Explain the use of per capita real GDP to compare economic performance across countries and discuss its limitations.”
Figure 25.7 and Figure 25.9 have been updated to show more context and some related stats were changed in the text.
The following was added for Numerical Problem #6: “Assume a 5% interest rate.”
Figure 29.10 title had the year corrected to “2020” so that it now reads: “M2 and Nominal GDP, 1980–2020.”
Fixed broken "Pop! Goes the Econ: Video Killed the Radio Star” link to: https://youtu.be/W8r-tXRLazs.
Updated second bullet under Key Takeaways and added “Regime Shift at the Fed” box and attachment at the end of the chapter.