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| Introduction and Measurement | |
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| What Is Macroeconomics? | |
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| How Macroeconomics Affects Our Everyday Lives | |
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| Defining Macroeconomics | |
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| Actual and Natural Real GDP | |
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| Macroeconomics in the Short Run and Long Run | |
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| Case Study: A Century of Business Cycles | |
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| Macroeconomics at the Extremes | |
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| Taming Business Cycles: Stabilization Policy | |
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| The Internationalization of Macroeconomics | |
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| The Measurement of Income, Prices, and Unemployment | |
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| Why We Care About Income | |
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| The Circular Flow of Income and Expenditure | |
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| What Transactions Should Be Included in Income and Expenditure? | |
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| Components of Expenditure | |
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| The Magic Equation and the Twin Deficits | |
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| How Much Income Flows from Business Firms to Households? | |
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| Nominal GDP, Real GDP, and the GDP Deflator | |
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| Measuring Unemployment | |
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| Case Study: Conflicting Measurements: Was the 2002-04 Recover Jobless or Not? | |
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| How We Measure Real GDP and the Inflation Rate | |
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| Income , Interest Rates, Policy, and the Open Economy | |
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| Spending, Income, and Interest Rates | |
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| Business Cycles and the Theory of Income Determination | |
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| Income Determination, Unemployment, and the Price Level | |
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| Planned Expenditure | |
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| Case Study: Why Did U.S. Saving Almost Vanish in This Decade? | |
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| The Economy In and Out of Equilibrium | |
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| The Multiplier Effect | |
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| Sources of Shifts in Planned Spending | |
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| How Can Monetary Policy Affect Planned Spending? | |
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| The Relation of Autonomous Planned Spending to the Interest Rate | |
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| The IS Curve | |
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| Conclusion: The Missing Relation | |
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| Allowing for Income Taxes and Income-Dependent Net Exports | |
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| Monetary and Fiscal Policy in the IS-LM Model | |
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| Introduction: The Power of Monetary and Fiscal Policy | |
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| Why People Use Money | |
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| Income, the Interest Rate, and the Demand for Money | |
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| The LM Curve | |
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| The IS Curve Meets the LM Curve | |
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| Monetary Policy in Action | |
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| How Fiscal Expansion Can Crowd Out Investment | |
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| Strong and Weak Effects of Monetary Policy | |
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| Strong and Weak Effects of Fiscal Policy | |
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| Using Fiscal and Monetary Policy Together | |
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| The Elementary Algebra of the IS-LM Model | |
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| The Government Budget, Foreign Borrowing, and the Twin Deficits | |
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| Introduction | |
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| The Pervasive Effects of the Government Budget | |
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| Case Study: The Government Budget In Historical Perspective | |
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| The Structural Budget | |
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| National Saving and the Consequences of the Government Budge | |
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| Case Study: How the Deficits Rejoined to Become Twins | |
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| The Current Account and the Balance of Payments | |
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| Conclusion: Solutions to the National Saving Squeeze | |
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| International Trade, Exchange Rates, and Macroeconomic Policy | |
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| Introduction | |
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| Exchange Rates | |
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| The Market for Foreign Exchange | |
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| Real Exchange Rates and Purchasing Power Parity | |
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| Exchange Rate Systems | |
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| Case Study: Asia Intervenes with Buckets to Buy Dollars and Finance the U.S. Current Account Deficit How Long Can This Continue? | |
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| Determinants of Net Exports | |
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| The Real Exchange Rate and Interest Rate | |
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| Effects of Monetary and Fiscal Policy with Fixed and Flexible Exchange Rates | |
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| Conclusion: Economic Policy in the Open Economy | |
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| Aggregate Demand, Aggregate Supply, Unemployment and Inflation | |
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| Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy | |
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| Combining Aggregate Demand with Aggregate Supply | |
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| Flexible Prices and the AD Curve | |
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| Shifting the Aggregate Demand Curve with Monetary and Fiscal Policy | |
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| Alternative Shapes of the Short-Run Aggregate Supply Curve | |
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| The Short-Run Aggregate Su | |