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| Preface | |
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| Introduction | |
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| Introduction to Economics | |
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| The Scope and Method of Economics | |
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| Why Study Economics? | |
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| The Scope of Economics | |
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| The Methods of Economics | |
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| The Economic Problem: Scarcity and Choice | |
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| Scarcity, Choice, and Opportunity Cost | |
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| Economic Systems | |
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| Demand, Supply, and Market Equilibrium | |
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| Firms and Households: The Basic Decision-Making Units | |
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| Input Markets and Output Markets: The Circular Flow | |
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| Demand in Product/Output Markets | |
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| Supply in Product/Output Markets | |
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| Market Equilibrium | |
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| Demand and Supply in Product Markets: A Review | |
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| Looking Ahead: Markets and the Allocation of Resources | |
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| The Price System and Demand and Supply | |
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| The Price System: Rationing and Allocating Resources | |
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| Supply and Demand Analysis: An Oil Import Fee | |
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| Macroeconomics | |
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| Concepts and Problems in Macroeconomics | |
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| Introduction to Macroeconomics | |
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| The Roots of Macroeconomics | |
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| Macroeconomic Concerns | |
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| Government in the Macroeconomy | |
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| The Components of the Macroeconomy | |
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| The Methodology of Macroeconomics | |
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| The U.S. Economy in the Twentieth Century: Trends and Cycles | |
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| Measuring National Output and National Income | |
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| Gross Domestic Product | |
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| Calculating Gdp | |
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| The Income Approach | |
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| From Gdp to Disposable Personal Income | |
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| Nominal Versus Real Gdp | |
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| Limitations of the Gdp Concept | |
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| Long-Run and Short-Run Concerns: Growth, Productivity, Unemployment, and Inflation | |
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| Long-Run Output and Productivity Growth | |
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| Recessions, Depressions, and Unemployment | |
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| Inflation | |
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| The Goods and Money Markets | |
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| Aggregate Expenditure and Equilibrium Output | |
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| Aggregate Output and Aggregate Income (Y) | |
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| Equilibrium Aggregate Output (Income) | |
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| The Multiplier | |
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| The Government and Fiscal Policy | |
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| Government in the Economy | |
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| Fiscal Policy at Work: Multiplier Effects | |
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| Adding the International Sector | |
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| The Federal Budget | |
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| The Economy's Influence on the Government Budget | |
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| The Money Supply and the Federal Reserve System | |
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| An Overview of Money | |
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| How Banks Create Money | |
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| The Federal Reserve System | |
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| How The Federal Reserve Controls the Money Supply | |
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| Money Demand, the Equilibrium Interest Rate, and Monetary Policy | |
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| The Demand for Money | |
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| The Equilibrium Interest Rate | |
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| Looking Ahead: The Federal Reserve and Monetary Policy | |
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| Macroeconomic Analysis | |
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| Money, the Interest Rate, and Output: Analysis and Policy | |
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| The Links Between the Goods Market and the Money Market | |
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| Combining the Goods Market and the Money Market | |
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| Other Determinants of Planned Investment | |
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| Aggregate Demand, Aggregate Supply, and Inflation | |
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| The Aggregate Demand Curve | |
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| The Aggregate Supply Curve | |
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| The Equilibrium Price Level | |
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| The Long-Run Aggregate Supply Curve | |
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| Aggregate Demand, Aggregate Supply, and Monetary and Fiscal Policy | |
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| Causes of Inflation | |
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| The Labor Market, Unemployment, and Inflation | |
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| The Labor Market: Basic Concepts | |
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| The Classical View of the Labor Market | |
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| Explaining the Existence of Unemployment | |
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| The Short-Run Relationship Between the Unemployment Rate and Inflation | |
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| The Long-Run Aggregate Supply Curve, Potential GDP, and the Natural Rate of Unemployment | |
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| Macroeconomic Issues and Policy | |
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| The Effects of the Stock Market on the Economy | |
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| The Federal Reserve's Respoinse to the State of the Economy | |
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| Lags in the Economy's Response to Monetary and Fiscal Policy | |
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| Government Budget Policy | |
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| Business Cycles in other Countries | |
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| Household and Firm Behavior in the Macroeconomy: A Further Look | |
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| Households: Consumption and Labor Supply Decisions | |
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| Firms: Investment and Employment Decisions | |
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| Productivity and the Business Cycle | |
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| The Relationship Between Output and Unemployment | |
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| The Size of the Multiplier | |
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| Long-Run Growth | |
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| The Growth Process: From Agriculture to Industry | |
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| The Sources of Economic Growth | |
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| Growth and Productivity in the United States | |
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| Economic Growth and Public Policy | |
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| The Pros and Cons of Growth | |
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| Debates in Macroeconomics: Monetarism, New Classical Theory, and Supply-Side Economics | |
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| Keynesian Economics | |
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| Monetarism | |
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| New Classical Macroeconomics | |
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| Supply-Side Economics | |
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| Testing Alternative Macroeconomic Models | |
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| International Economics | |
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| The World Economy | |
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| International Trade, Comparative Advantage, and Protectionism | |
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| Trade Surpluses and Deficits | |
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| The Economic Basis for Trade: Comparative Advantage | |
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| The Sources of Comparative Advantage | |
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| Trade Barriers: Tariffs, Export Subsidies, and Quotas | |
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| Free Trade or Protection? | |
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| An Economic Consensus | |
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| Open-Economy Macroeconomics: The Balance of Payments and Exchange Rates | |
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| The Balance of Payments | |
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| Equilibrium Output (Income) in an Open Economy | |
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| The Open Economy with Flexible Exchange Rates | |
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| An Interdependent World Economy | |
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| Economic Growth in Developing and Transitional Economies | |
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| Life in the Developing Nations: Population and Poverty | |
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| Economic Development: Sources and Strategies | |
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| Issues in Economic Development | |
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| Economies in Transition | |
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| The End of the Soviet Union | |
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| The Transition to a Market Economy | |
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| Glossary | |
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| Solutions to Even-Numbered Problems | |
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| Index | |
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| Photo Credits | |