Table of Contents

PART I: WHAT IS ECONOMICS? Intro The Ordinary Business Of Life 1 First Principles 2 Economic Models: Trade-Offs And Trade 2 Appendix Graphs In Economics PART II: SUPPLY AND DEMAND 3 Supply And Demand 4 Price Controls And Quotas: Meddling With Markets 5 International Trade 5 Appendix Consumer And Producer Surplus PART III: INTRODUCTION TO MACROECONOMICS 6 Macroeconomics: The Big Picture 7 Gdp And Cpi: Tracking The Macroeconomy 8 Unemployment And Inflation PART IV: LONG-RUN ECONOMIC GROWTH 9 Long-Run Economic Growth 10 Savings, Investment Spending, And The Financial System Appendix Toward A Fuller Understanding Of Present Value PART V: SHORT-RUN ECONOMIC FLUCTUATIONS 11 Income And Expenditure Appendix Deriving The Multiplier Algebraically 12 Aggregate Demand And Aggregate Supply PART VI: STABILIZATION POLICY 13 Fiscal Policy Appendix Taxes And The Multiplier 14 Money, Banking, And The Federal Reserve System 15 Monetary Policy Appendix Reconciling The Two Models Of The Interest Rate 16 Inflation, Disinflation, And Deflation 17 Crises And Consequences PART VII: EVENTS AND IDEAS 18 Events And Ideas PART VIII: THE OPEN ECONOMY 19 Open-Economy Macroeconomics Macroeconomic Data Tables Solutions To "Check Your Understanding" Questions Glossary Index

About the Author

Paul Krugman, recipient of the 2008 Nobel Memorial Prize in Economics, is Professor of Economics at Princeton University, USA, where he regularly teaches the principles course. He received his BA from Yale and his PhD from MIT. Prior to his current position, he taught at Yale, Stanford, and MIT. He also spent a year on staff of the Council of Economics Advisors in 1982-1983. His research is mainly in the area of international trade, where he is one of the founders of the 'new trade theory,' which focuses on increasing returns and imperfect competition. He also works in international finance, with a concentration in currency crises. In 1991, Krugman received the American Economic Association's John Bates Clark medal. In addition to his teaching and academic research, Krugman writes extensively for nontechnical audiences and he is a regular op-ed columnist for the New York Times.

Robin Wells was a lecturer and researcher in Economics at Princeton University, USA, where she has taught undergraduate courses. She received her BA from the University of Chicago and her PhD from the University of California, Berkeley; she then did her postdoctoral work at MIT. She has taught at the University of Michigan, the University of Southampton (UK), Stanford, and MIT. Her teaching and research focus on the theory of organizations and incentives.