Table Of ContentK
r
u
g
m
a
n
•
W
e
l
l
s
M
A
C
R
O
E
C
O
N
O
M
I
C
S
I
N
M
O
D
U
L
E
www.wortheconomics.com
S
THIRD EDITION
MACROECONOMICS
THIRD
EDITION
II NN MM OO DD UU LL EE SS
WWOORRTTHH
Cover photos Shanghai: istockphoto/Thinkstock; paper money: Shutterstock; gas prices: Paul Krugman • Robin Wells
© Laura Gangi Pond/Istockphoto/thinkstock; girl writing on graph: istockphoto/Thinkstock;
neon sign: Mikeledray/Shutterstock; loading dock: Glow Images/Superstock; looking for
work: Everett Collection/Shutterstock; welder: Thinkstock
D Graphics Worth: Krugman Economics 3e in Mods
Applications in Macroeconomics in Modules
SECTION SECTION-OPENING STORIES
1: 1:
Basic Economic Concepts Any Given Sunday
2: 2:
Supply and Demand Blue Jean Blues
3: 3:
Macroeconomic Measurement The New #2
4: 4:
Unemployment and Inflation A Very British Dilemma
5: 5:
Long-Run Economic Growth Tall Tales
6: 6:
Savings, Investment Spending, and the Funds for Facebook
Financial System
7: 7:
Income and Expenditure From Boom to Bust
8: 8:
Aggregate Demand and Aggregate Supply Shocks to the System
9: 9:
Fiscal Policy To Stimulate or Not to Stimulate?
10: 10:
Money, Banking, and the Federal Reserve Funny Money
System
11: 11:
Monetary Policy Chairman of the Board
12: 12:
Policy Responses to Unemployment and Bringing a Suitcase to the Bank
Inflation
13: 13:
Open-Economy Macroeconomics Switzerland Doesn’t Want Your Money
14: 14:
Macroeconomics: Events and Ideas A Tale of Two Slumps
D Graphics Worth: Krugman Economics 3e in Mods
Green type indicates global example
ECONOMICS IN ACTION BUSINESS CASES
1: 1:
Fending Off Depression n Rich Nation, Poor Efficiency, Opportunity Cost, and the Logic of
Nation Lean Production
2: 2:
Beating the Traffic n Only Creatures Small and Li & Fung: From Guangzhou to You
Pampered n The Rice Run of 2008 n Price
Floors and School Lunches n The Clams of the
Jersey Shore n Skill and Comparative Advantage
3: 3:
Defining Recessions and Expansions n Comparing Getting a Jump on GDP
Recessions n Creating the National Accounts n Our
Imputed Lives n Miracle in Venezuela n GDP and
the Meaning of Life
4: 4:
Failure to Launch n Natural Unemployment A Monster Slump
Around the OECD n Israel’s Experience with
Inflation n Indexing to the CPI
5: 5:
India Takes Off n The Information Technology Big Box Boom
Paradox n The Brazilian Breadbasket n Are
Economies Converging?
6: America’s Low Savings n Fifty Years of Fluctuations
in U.S. Interest Rates n How Big Is That Jackpot,
Anyway? n The Great American Housing Bubble
7: 7:
The Multiplier and the Great Depression n Interest Making It Through in Muskegon
Rates and the U.S. Housing Boom n Inventories and
the End of a Recession
8: 8:
Moving Along the Aggregate Demand Curve, 1979–1980 n United in Pain
Prices and Output During the Great Depression n
Supply Shocks Versus Demand Shocks in Practice
9: 9:
What Was in the Recovery Act? n Multipliers and the Priming the Pumps
Obama Stimulus n Europe’s Search for a Fiscal Rule
10: 10:
The History of the Dollar n It’s a Wonderful The Perfect Gift: Cash or a Gift Card?
Banking System n Regulation After the 2008 Crisis
11: 11:
Who Gets Interest on the Fed’s Assets? n A Yen for PIMCO Bets on Cheap Money
Cash n The Fed Reverses Course n What the Fed
Wants, the Fed Gets n International Evidence of
Monetary Neutrality
12: 12:
What Caused Zimbabwe’s Inflation? n The Great Licenses to Print Money
Disinflation of the 1980s n The Deflation Scare of
2010 n Lights Out at Lehman
13: 13:
GDP, GNP, and the Current Account n War of the Earthmovers
Burgernomics n China Pegs the Yuan
14:
Supply-Side Economics n An Irish Role Model?
D Graphics Worth: Krugman Economics 3e in Mods
This page intentionally left blank
D Graphics Worth: Krugman Economics 3e in Mods
This page intentionally left blank
D Graphics Worth: Krugman Economics 3e in Mods
This page intentionally left blank
D Graphics Worth: Krugman Economics 3e in Mods
MACROECONOMICS
I N M O D U L E S
D Graphics Worth: Krugman Economics 3e in Mods
This page intentionally left blank
D Graphics Worth: Krugman Economics 3e in Mods Macro
THIRD EDITION
MACROECONOMICS
I N M O D U L E S
Paul Krugman • Robin Wells
Princeton University
WORTH PUBLISHERS
A Macmillan Higher Education Company
D Graphics Worth: Krugman Economics 3e in Mods Macro
Vice President, Editing, Design, and Media Production: Catherine Woods
Vice President, Editorial—Sciences & Social Sciences: Charles Linsmeier
Publisher, Social and Behavioral Sciences: Kevin Feyen
Associate Publisher, Economics & Geography: Steven A. Rigolosi
Executive Development Editor: Sharon Balbos
Development Editor: Mary Walsh
Editorial Assistant: Fay Kelly
Marketing Manager: Thomas Digiano
Marketing Assistant: Tess Sanders
Executive Media Editor: Rachel Comerford
Media Editor: Lukia Kliossis
Director of Development for Print and Digital: Tracey Kuehn
Product Owner—LaunchPad: Marie McHale
Managing Editor: Lisa Kinne
Project Editor: Liz Geller
Art Director: Babs Reingold
Cover Designers: Lyndall Culbertson and Babs Reingold
Interior Layout: Paul Lacy
Interior Design: Charles Yuen
Photo Editor: Cecilia Varas
Photo Researcher: Elyse Rieder
Production Manager: Barbara Anne Seixas
Supplements Production Manager: Stacey Alexander
Supplements Project Editor: Edgar Bonilla
Composition and Illustration: TSI Graphics
Printing and Binding: RR Donnelley
See page vii for credits information. Page vii is an extension of this
copyright page.
ISBN-13: 978-1-4641-3905-5
ISBN-10: 1-4641-3905-9
Library of Congress Control Number: 2014932841
©2014, 2012, 2006 by Worth Publishers
All rights reserved.
Printed in the United States of America
First printing
Worth Publishers
41 Madison Avenue
New York, NY 10010
www.worthpublishers.com
