Chapter Supplements
I have prepared the following supplements
to accompany the text material. Supplements for each chapter can be downloaded
in PDF format by clicking on the chapter heading.
ACS = Additional Case Study
CSE = Case Study Extension
LS = Lecture Supplement or Additional Readings
AT = Advanced Topic
1-1 CSE The Recent Behavior of U.S. Economy: A Guide to the Case Studies
1-2 ACS Presidential Elections and the Economy
1-3 ACS When Is the Economy in a Recession?
1-4 LS Economic Rhetoric
1-5 LS Additional Readings
CHAPTER 2
2-1 LS Measuring Output
2-2 LS Pitfalls in National Income Accounting
2-3 LS Nominal and Real GDP Since 1929
2-4 LS Chain-Weight Real GDP
2-5 ACS The Increasing Role of Services
2-6 CSE The Components of GDP (CS p.27)
2-7 LS Defining National Income
2-8 LS Seasonal Adjustment and the Seasonal Cycle
2-9 CSE Measuring the Price of Light (CS p.33)
2-10 CSE Improving the CPI (CS p.33)
2-11 CSE CPI Improvements and the Decline in Inflation During the 1990s (CS
p.33)
2-12 LS Alternative Measures of Unemployment
2-13 ACS Improving the National Accounts
CHAPTER 3
3-1 LS How Long is the Long Run? Part One
3-2 LS What is Capital?
3-3 ACS The Consumption Function
3-4 LS Economists’ Terminology
3-5 ACS Public and Private Saving
3-6 CSE Wars and Interest Rates:Other Explanations (CS p.68)
3-7 LS A First Look at Nominal and Real Interest Rates
3-8 LS Labor’s Share of Output in the United Kingdom
CHAPTER 4
4-2 LS More on Credit Cards
4-3 LS The Velocity of Money and Poetry and Song
4-4 CSE Data on Money Growth and Inflation (CS p.87)
4-5 LS Seigniorage as an Inflation Tax
4-6 LS Seigniorage:How to Create Your Own—Part I
4-7 LS Seigniorage:How to Create Your Own—Part II
4-8 LS Deriving the Fisher Equation
4-9 CSE Using Interest Rates to Forecast Inflation (CS p.92)
4-10 LS Inflation and Economic Growth
4-11 AT The Welfare Costs of Inflation and the Optimum Quantity of Money
4-12 ACS Indexation
4-13 LS U.S.Treasury Issues Indexed Bonds
4-14 CSE A Guide to Oz (CS p.101)
4-15 CSE Are Monetary Allegories in the Eye of the Beholder? The Case of Mary
Poppins (CS p.101)
4-16 LS How to Stop a Hyperinflation
4-17 ACS The Israeli Hyperinflation
4-18 LS Additional Readings
CHAPTER 5
5-1 LS The Terminology of Trade
5-2 ACS Saving and Investment in Open Economies
5-3 LS The Open Economy in the Very Long Run
5-4 ACS Benefits of a Trade Deficit
5-5 ACS How Businesses Respond to the Exchange Rate
5-6 ACS Tourism and the Exchange Rate
5-7 CSE The Exchange Rate and the Inflation Rate (CS p.140)
5-8 AT Covered Interest Parity
5-9 ACS Purchasing-Power Parity and Real Exchange Rates
5-10 CSE More on the Big Mac and PPP (CS p.143)
CHAPTER 6
6-1 ACS Social Costs of Unemployment
6-2 ACS Job Finding and Job Separation
6-3 LS A More General Theory of the Natural Rate of Unemployment
6-4 CSE Dutch Male Unemployment and Unemployment Benefits (CS p.164)
6-5 LS Robert Lucas and $500 Bills
6-6 LS More on the Minimum Wage
6-7 CSE Minimum Wages and Efficiency Wages (CS p.167)
6-8 AT Implicit Contracts
6-9 ACS The Two Views of Unions
6-10 AT Efficiency Wages I:The Solow Condition
6-11 AT Efficiency Wages II:The Shapiro–Stiglitz Model
6-12 ACS Efficiency Wages and Wage Differentials
6-13 CSE More on Henry Ford (CS p.171)
6-14 LS More on the Duration of Unemployment
6-15 LS Additional Readings
CHAPTER 7
7-1 LS How Long Is the Long Run? Part Two
7-2 ACS Growth Facts
7-3 CSE Does the Solow Model Really Explain Japanese Growth? (CS p.194)
7-4 ACS The Decline in the U.S.Saving Rate
7-5 AT Growth Rates,Logarithms,and Elasticities
7-6 ACS Labor-Force Participation
7-7 ACS Bridge Jobs and the Transition to Retirement
7-8 CSE How Much Variation in Per-Capita Output Is Explained by sandn? (CS
pp.196,209)
7-9 LS The Solow Model:An Intuitive Approach.Part One
7-10 LS Additional Readings
CHAPTER 8
8-1 ACS More on the Convergence Hypothesis
8-2 ACS Convergence of Income Across the United States
8-3 CSE More on the Productivity Slowdown (CS p.231)
8-4 CSE More on the New Economy (CS p.233)
8-5 LS The Economics of Ideas
8-6 LS Green Growth
8-7 ACS Corruption and Growth
8-8 LS Income Inequality and Growth
8-9 LS The Solow Growth Model:An Intuitive Approach.Part Two
8-10 LS Additional Readings
CHAPTER 9
9-1 ACS The Dating of Business Cycles
9-2 ACS Understanding Business Cycles I:The Stylized Facts
9-3 CSE Are Prices Sticky? I:Evidence from Individual Transactions (CS p.260)
9-4 CSE Are Prices Sticky? II:Mail-Order Evidence (CS p.260)
9-5 AT Price Stickiness and Pareto Efficiency
9-6 ACS Velocity and the 1982 Recession
9-7 LS Understanding Business Cycles II:Modeling Cycles
9-8 LS The Economy in the Long Run and the Very Long Run:Summary of Parts II
and III
and Introduction to Part IV
9-9 ACS The Cost of Business Cycles
9-10 LS Additional Readings
CHAPTER 10
10-1 LS The Key Features of the IS–LMModel
10-2 ACS Mr.Keynes and the Classics:The Art of Modeling
10-3 AT The IS–LMModel:A Critical Evaluation
10-4 LS Additional Readings
CHAPTER 11
11-1 ACS Do High Deficits Cause High Interest Rates?
11-2 CSE The Fair Model (CS p.309)
11-3 ACS Credit Rationing and the Great Depression
11-4 ACS More on Japan and the Liquidity Trap
11-5 LS Proportional Income Taxes and the ISCurve
11-6 LS Additional Readings
CHAPTER 12
12-1 LS The Dependence of Net Exports on GDP
12-2 ACS The Rise in the Dollar,1979–1982
12-3 LS Can World Financial Markets Usurp the Power of the Federal Reserve?
12-4 ACS Bretton Woods
12-5 ACS Finland in the 1990s
12-6 LS The Mundell–Fleming Model in Y–rSpace
12-7 AT Uncovered Interest Parity
12-8 ACS Interest-Rate Differentials in the European Monetary System
12-9 AT The Dornbusch Overshooting Model
12-10 CSE Mexico’s Foreign Exchange Reserves (CS p.353)
12-11 ACS Exchange-Rate Volatility
12-12 CSE The Federal Reserve and the European Central Bank (CS p.357)
12-13 CSE Differing Effects of a Common Monetary Policy in Europe (CS p.357)
12-14 LS Additional Readings
CHAPTER 13
13-1 CSE Real Wages Over the Business Cycle (CS p.379)
13-2 LS The Worker-Misperception Model
13-3 CSE Anticipated and Unanticipated Money (CS p.382)
13-4 AT Is Price Flexibility Stabilizing?
13-5 LS How Long Is the Long Run? Part Three
13-6 AT Policy Ineffectiveness
13-7 CSE Did the NAIRU Decline in the 1990s? (CS p.389)
13-8 CSE Costs of Disinflation (CS p.395)
13-9 CSE The Unequal Costs of Disinflation (CS p.395)
13-10 ACS “The Poincaré Miracle”
13-11 LS Hysteresis and the Long-Run Phillips Curve
13-12 ACS Unemployment in the United Kingdom in the 1980s
13-13 LS Additional Readings
CHAPTER 14
14-1 ACS Profit Sharing as an Automatic Stabilizer
14-2 ACS The Labor Market in the 1990 Recession
14-3 ACS Leading Indicators in Action
14-4 LS A Different Leading Indicator
14-5 CSE The Pitfalls of Forecasting (CS p.409)
14-6 CSE Are Forecasters Rational? (CS p.409)
14-7 LS Microfoundations and Aggregation
14-8 CSE Spare a Thought for the Empirical Macroeconomist (CS p.413)
14-9 CSE The Response to Romer (CS p.413)
14-10 ACS Distrust of Policymakers
14-11 ACS The Political Business Cycle
14-12 ACS The Political Business Cycle at Its Worst
14-13 ACS The Economy Under Democratic and Republican Presidents
14-14 LS Price Level Versus Inflation Targeting
14-15 CSE Inflation Targeting (CS p.420)
14-16 CSE Central-Bank Independence and Growth (CS p.422)
14-17 CSE Measuring Central-Bank Independence (CS p.422)
14-18 LS Additional Readings
CHAPTER 15
15-1 ACS Debt and Deficits:The Data
15-2 CSE How Important Is Crowding Out? (CS p.434)
15-3 ACS Structural and Cyclical Deficits
15-4 LS Generational Accounting
15-5 LS The Government Budget Constraint
15-6 LS Borrowing Constraints Using the Fisher Diagram
15-7 ACS Social Security Benefits and Ricardian Equivalence
15-8 AT Is Everything Neutral?
15-9 CSE Does Altruism Matter? (CS p.446)
15-10 LS Unpleasant Monetarist Arithmetic
15-11 CSE Inflation Indexed Bonds and Expected Inflation (CS p.451)
15-12 LS Additional Readings
CHAPTER 16
16-1 ACS The Components of Consumption
16-2 LS The Stock Market and Consumer Spending
16-3 ACS Saving and the Fear of Nuclear War
16-4 CSE The 1975 Tax Cut (CS p.478)
16-5 CSE Do Consumers Anticipate Changes in Social Security Benefits? (CS p.480)
16-6 ACS Is Unemployment Insurance Really an Automatic Stabilizer?
16-7 LS Additional Readings
CHAPTER 17
17-1 LS The Short Run and the Long Run:Investment and the Capital Stock
17-2 LS A Different View of the Stock Exchange
17-3 ACS Financing Constraints in Japanese Firms
17-4 ACS Taxes,Babies,and Housing
17-5 CSE The Importance of Inventories (CS p.505)
17-6 ACS Inventories and Production Smoothing
17-7 ACS Production Smoothing and Coordination Failure
17-8 AT The Multiplier-Accelerator Model
17-9 AT Asset Pricing I:Why Do We Care?
17-10 AT Asset Pricing II:Stock Prices and Efficient Markets
17-11 AT Asset Pricing III:Bond Prices and the Term Structure of Interest Rates
17-12 AT Asset Pricing IV:Bubbles,Excess Volatility,and Fads
17-13 AT Asset Pricing V:The Capital-Asset Pricing Model
17-14 AT Asset Pricing VI:Animal Spirits
17-15 LS Additional Readings
CHAPTER 18
18-1 ACS Checks Without Banks:The Irish Banking Strike
18-2 CSE The Welfare Costs of Inflation Revisited (CS p.519)
18-3 LS Money as a Medium of Exchange:The Search Model
18-4 ACS M2 Velocity
18-5 LS Additional Readings
CHAPTER 19
19-1 ACS How a Real Business Cycle Model Is Constructed
19-2 LS The Microeconomics of Labor Supply
19-3 ACS Quits and Layoffs
19-4 ACS Involuntary Unemployment and Overqualification
19-5 CSE Galactic Real Business Cycles (CS p.532)
19-6 AT Why Technology Shocks Are So Important in Real Business Cycle Models
19-7 ACS Volatility and Growth
19-8 AT Real Business Cycles and Random Walks
19-9 AT Menu Costs
19-10 AT Thick-Market Externalities and Coordination Failure
19-11 LS Inflation Inertia
19-12 LS How Long Is the Long Run? Part Four
19-13 LS Additional Readings