Chapter Supplements

Chapter Supplements from Instructor's Resources

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CHAPTER 1

1-1 The Recent Behavior of U.S. Economy: A Guide to the Case Studies

1-2 Presidential Elections and the Economy

1-3 When Is the Economy in a Recession?

1-4 Economy Rhetoric

1-5 Additional Readings

CHAPTER 2

2-1 Measuring Output

2-2 Nominal and Real GDP Since 1929

2-3 Chain-Weighted Real GDP

2-4 The Components of GDP (Case Study)

2-5 Defining National Income (Case Study)

2-6 Seasonal Adjustment and the Seasonal Cycle

2-7 Measuring the Price of Light

2-8 Improving the CPI

2-9 CPI Improvements and the Decline in Inflation During the 1990s

2-10 The Billion Prices Project

2-11 Alternative Measures of Unemployment

2-12 Improving the National Accounts

CHAPTER 3

3-1 How Long is the Long Run? Part One

3-2 What Is Capital?

3-3 Labor’s Share of Output in the United Kingdom

3-4 The Consumption Function

3-5 Economist’s Terminology

3-6 Public and Private Saving

3-7 Wars and Interest Rates

3-8 A First Look at Nominal and Real Interest Rates

CHAPTER 4

4-1 Money as a Medium of Exchange: “The Search Model”

4-2 If You Think the Island of Yap Has Problems… (Case Study)

4-3 More on Credit Cards

4-4 Financial Innovation, Near Money, and the Demise of Monetary Aggregates

4-5 Checks Without Banks: The Irish Banking Strike

4-6 Additional Readings

CHAPTER 5

5-1 The Velocity of Money in Poetry and Song

5-2 Data on Money Growth and Inflation (Case Study)

5-3 Seigniorage as an Inflation Tax

5-4 Deriving the Fisher Equation

5-5 Using Interest Rates to Forecast Inflation (Case Study)

5-6 Transaction Models of Money Demand

5-7 Inflation and Economic Growth

5-8 The Welfare Costs of Inflation and the Optimum Quantity of Money

5-9 The Welfare Costs of Inflation Revisited

5-10 Indexation

5-11 U.S. Treasury Issues Indexed Bonds

5-12 A Guide to Oz (Case Study)

5-13 Are Monetary Allegories in the Eye of the Beholder? The Case of Mary Poppins (Case Study)

5-14 How to Stop a Hyperinflation

5-15 The Israeli Hyperinflation

5-16 Additional Readings

CHAPTER 6

6-1 The Terminology of Trade

6-2 Saving and Investment in Open Economies

6-3 The Open Economy in the Very Long Run

6-4 Tourism and the Exchange Rate

6-5 The Exchange Rate and the Inflation Rate (Case Study)

6-6 Covered Interest Parity

6-7 Purchasing-Power Parity and Real Exchange Rates

6-8 More on the Big Mac and PPP (Case Study)

CHAPTER 7

7-1 Social Costs of Unemployment

7-2 Job Finding and Job Separation

7-3 A More General Theory of the Natural Rate of Unemployment

7-4 Dutch Male Unemployment and Unemployment Benefits (Case Study)

7-5 Robert Lucas and $500 Bills

7-6 More on the Minimum Wage

7-7 Minimum Wages and Efficiency Wages (Case Study)

7-8 Implicit Contracts

7-9 The Two Views of Unions

7-10 Efficiency Wages I: The Solow Condition

7-11 Efficiency Wages II: The Shapiro–Stiglitz Model

7-12 Efficiency Wages and Wage Differentials

7-13 More on Henry Ford (Case Study)

7-14 More on the Duration of Unemployment (Case Study)

7-15 Trends in Unemployment

7-16 The Secrets to Happiness

7-17 Additional Readings

CHAPTER 8

8-1 How Long Is the Long Run? Part Two

8-2 Growth Facts

8-3 Does the Solow Model Really Explain Japanese Growth? (Case Study)

8-4 The Decline in the U.S. Saving Rate

8-5 Growth Rates, Logarithms, and Elasticities

8-6 Labor-Force Participation

8-7 Bridge Jobs and the Transition to Retirement

8-8 How Much Variation in Per-Capita Output Is Explained by s and n? (Case Studies)

8-9 The Solow Model: An Intuitive Approach. Part One

8-10 Additional Readings

CHAPTER 9

9-1 More on the Convergence Hypothesis

9-2 Convergence of Income Across the United States

9-3 The Economics of Ideas

9-4 Green Growth

9-5 Corruption and Growth

9-6 Income Inequality and Growth

9-7 The Solow Growth Model: An Intuitive Approach—Part Two

9-8 More on the Productivity Slowdown (Case Study)

9-9 More on the New Economy (Case Study)

9-10 Additional Readings

CHAPTER 10

10-1 The Dating of Business Cycles

10-2 Understanding Business Cycles I: The Stylized Facts

10-3 Are Prices Sticky? I: Evidence from Individual Transactions (Case Study)

10-4 Are Prices Sticky? II: Mail-Order Evidence (Case Study)

10-5 Price Stickiness and Pareto Efficiency

10-6 Velocity and the 1982 Recession

10-7 Understanding Business Cycles II: Modeling Cycles

10-8 The Economy in the Long Run and the Very Long Run: Summary of Parts II and III and Introduction to Part IV

10-9 The Cost of Business Cycles

10-10 Additional Readings

CHAPTER 11

11-1 The Key Features of the IS–LM Model

11-2 Mr. Keynes and the Classics: The Art of Modeling

11-3 The IS–LM Model: A Critical Evaluation

11-4 Additional Readings

CHAPTER 12

12-1 Do High Deficits Cause High Interest Rates?

12-2 Macroeconometric Models

12-3 Credit Rationing and the Great Depression

12-4 The Simple Algebra of the IS–LM Model and Aggregate Demand Curve

12-5 Proportional Income Taxes and the IS Curve

12-6 Additional Readings

CHAPTER 13

13-1 The Dependence of Net Exports on GDP

13-2 The Rise in the Dollar, 1979–1982

13-3 Can World Financial Markets Usurp the Power of the Federal Reserve?

13-4 Bretton Woods

13-5 Finland in the 1990s

13-6 The Mundell–Fleming Model in Y–r Space

13-7 Uncovered Interest Parity

13-8 Interest-Rate Differentials in the European Monetary System

13-9 The Dornbusch Overshooting Model

13-10 Mexico’s Foreign Exchange Reserves (Case Study)

13-11 Exchange-Rate Volatility

13-12 The Federal Reserve and the European Central Bank (Case Study)

13-13 Additional Readings

CHAPTER 14

14-1 The Sticky-Wage Model

14-2 Real Wages over the Business Cycle

14-3 The Worker-Misperception Model

14-4 Anticipated and Unanticipated Money (Case Study)

14-5 Is Price Flexibility Stabilizing?

14-6 How Long Is the Long Run? Part Three

14-7 Policy Ineffectiveness

14-8 Did the NAIRU Decline in the 1990s? (Case Study)

14-9 Costs of Disinflation (Case Study)

14-10 The Unequal Costs of Disinflation (Case Study)

14-11 “The Poincaré Miracle”

14-12 Hysteresis and the Long-Run Phillips Curve

14-13 Unemployment in the United Kingdom in the 1980s

14-14 Additional Readings

CHAPTER 15

15-1 How a Real Business Cycle Model Is Constructed

15-2 The Microeconomics of Labor Supply

15-3 Quits and Layoffs

15-4 Involuntary Unemployment and Overqualification

15-5 Why Technology Shocks Are So Important in Real Business Cycle Models

15-6 Real Business Cycles and Random Walks

15-7 Inflation Inertia

15-8 Volatility and Growth

15-9 How Long Is the Long Run? Part Four

15-10 Additional Readings

CHAPTER 16

16-1 The Components of Consumption

16-2 The Stock Market and Consumer Spending

16-3 Saving and the Fear of Nuclear War

16-4 The 1975 Tax Cut (Case Study)

16-5 Do Consumers Anticipate Changes in Social Security Benefits? (Case Study)

16-6 Is Unemployment Insurance Really an Automatic Stabilizer?

16-7 Additional Readings

CHAPTER 17

17-1 The Short Run and the Long Run: Investment and the Capital Stock

17-2 Asset Pricing I: Why Do We Care?

17-3 Asset Pricing II: Stock Prices and Efficient Markets

17-4 Asset Pricing III: Bond Prices and the Term Structure of Interest Rates

17-5 Asset Pricing IV: Bubbles, Excess Volatility, and Fads

17-6 Asset Pricing V: The Capital-Asset Pricing Model

17-7 Financing Constraints in Japanese Firms

17-8 Taxes, Babies, and Housing

17-9 The Tax Treatment of Housing

17-10 The Importance of Inventories

17-11 Inventories and Production Smoothing

17-12 Production Smoothing and Coordination Failure

17-13 The Multiplier-Accelerator Model

17-14 Additional Readings

CHAPTER 18

18-1 Menu Costs, Imperfect Competition, and the Welfare-Improving Effects of Policy

18-2 Profit Sharing as an Automatic Stabilizer

18-3 Leading Indicators in Action

18-4 The Pitfalls of Forecasting (Case Study)

18-5 Are Forecasters Rational? (Case Study)

18-6 Microfoundations and Aggregation

18-7 Spare a Thought for the Empirical Macroeconomist (Case Study)

18-8 The Response to Romer (Case Study)

18-9 Distrust of Policymakers

18-10 The Political Business Cycle

18-11 The Political Business Cycle at Its Worst

18-12 The Economy Under Democratic and Republican Presidents

18-13 Price Level Versus Inflation Targeting

18-14 Inflation Targeting (Case Study)

18-15 Central-Bank Independence and Growth (Case Study)

18-16 Measuring Central-Bank Independence (Case Study)

18-17 Additional Readings

CHAPTER 19

19-1 Debt and Deficits: The Data

19-2 How Important Is Crowding Out? (Case Study)

19-3 Structural and Cyclical Deficits

19-4 Generational Accounting

19-5 The Government Budget Constraint

19-6 Borrowing Constraints Using the Fisher Diagram

19-7 Social Security Benefits and Ricardian Equivalence

19-8 Is Everything Neutral?

19-9 Does Altruism Matter? (Case Study)

19-10 Unpleasant Monetarist Arithmetic

19-11 Inflation Indexed Bonds and Expected Inflation (Case Study)

19-12 Additional Readings

CHAPTER 20

20-1 The Perils of Employee Stock Ownership

20-2 How Does Financial Development Affect Growth?

20-3 Does Financial Development Cause Growth?

20-4 Financial Development and Industrial Structure

20-5 Unit Banking and Economic Growth

20-6 The Money Multiplier During the Financial Crisis of 2008–2009

20-7 Banks Hoard Reserves During the Financial Crisis

20-8 The Fed's Senior Loan Officer Survey

20-9 The Tax Treatment of Housing

20-10 More on the Fed's Rescue Programs

20-11 Exit Strategies for the Fed

20-12 Greenspan Warns About Government Budget Surpluses

20-13 The Squam Lake Report

20-14 Additional Readings