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Contents Publisher Information ix Chapter Economics The Study of Choice Defining Economics The Field of Economics The Economists Tool Kit 16 Review and Practice 22 Chapter Confronting Scarcity Choices in Production Factors of Production 27 The Production Possibilities Curve 33 Applications of the Production Possibilities Model 50 Review and Practice 62 Chapter Demand and Supply Demand 69 Supply 80 Demand , Supply , and Equilibrium 90 Review and Practice 105 Chapter Applications of Demand and Supply Putting Demand and Supply to Work 114 Government Intervention in Market Prices Price Floors and Price Ceilings 125 The Market for Services 135 Review and Practice 143 Chapter The Big Picture Growth of Real and Business Cycles 150 Changes 158 Unemployment 172
Review and Practice Chapter Measuring Total Output and Income Measuring Total Output Measuring Total Income and Economic Review and Practice Chapter Aggregate Demand and Aggregate Supply Aggregate Demand Aggregate Demand and Aggregate Supply The Long Run and the Short Run Recessionary and Gaps and Equilibrium Review and Practice Chapter Economic Growth The Significance of Economic Growth Growth and the Aggregate Supply Curve of Economic Growth Review and Practice Chapter The Nature and Creation of Money What 15 Money ?
The Banking System and Money Creation The Federal Reserve System Review and Practice Chapter 10 Financial Markets and the Economy The Bond and Foreign Exchange Markets Demand , Supply , and Equilibrium in the Money Market Review and Practice Chapter 11 Monetary Policy and the Fed Monetary Policy in the United States Problems and Controversies of Monetary Policy 181 187 203 211 219 224 234 247 260 267 278 286 294 299 307 320 329 334 345 361 366 377
Monetary Policy and the Equation of Exchange Review and Practice Chapter 12 Government and Fiscal Policy Government and the Economy The Use of Fiscal Policy to Stabilize the Economy Issues in Fiscal Policy Review and Practice Chapter 13 and the Aggregate Expenditures Model Determining the Level of Consumption The Aggregate Expenditures Model Aggregate Expenditures and Aggregate Demand Review and Practice Chapter 14 Investment and Economic Activity The Role and Nature of Investment of Investment Investment and the Economy Review and Practice Chapter 15 Net Exports and International Finance The International Sector An Introduction International Finance Exchange Rate Systems Review and Practice Chapter 16 and Unemployment Relating Inflation and Unemployment Explaining Relationships Inflation and Unemployment in the Long Run Review and Practice 389 398 405 416 424 431 436 447 467 475 482 490 499 503 509 519 528 538 545 554 562 573
Chapter 17 A Brief History of Thought and Policy The Great Depression and Economics 580 Economics in the 19605 and 590 for the Century 602 Review and Practice 613 Chapter 18 Inequality , Poverty , and Discrimination Income Inequality 618 The Economics of Poverty 628 The Economics of Discrimination 643 Review and Practice 652 Chapter 19 Economic Development The Nature and Challenge of Economic Development 659 Population Growth and Economic Development 671 Keys to Economic Development 680 Review and Practice 688 Chapter 20 Socialist Economies in Transition The Theory and Practice of Socialism 691 Socialist Systems in Action 697 Economies in Transition China and Russia 705 Review and Practice 716 Appendix A Graphs in Economics Nonlinear Relationships and Graphs without Numbers 719 Using Graphs and Charts to Show Values of Variables 729 How to Construct and Interpret Graphs 739 Appendix Extensions of the Aggregate Expenditures Model The Algebra of Equilibrium 754 The Aggregate Expenditures Model and Fiscal Policy 757 Review and Practice 763