Includes index.

pt. I. Introduction to economics and the economy -- 1. Limits, alternatives, and choices -- 2. The market system and the circular flow -- pt. II. Price, quantity, and efficiency -- 3. Demand, supply, and market equilibrium -- 4. Elasticity -- 5. Market failures : public goods and externalities -- pt. III. International economics -- 6. International trade -- 7. The balance of payments, exchange rates, and trade deficits -- 8. The economics of developing countries -- pt. IV. GDP, growth, and instability -- 9. An introduction to macroeconomics -- 10. Measuring domestic output and national income -- 11. Economic growth -- 12. Business cycles, unemployment, and inflation -- pt. V. Macroeconomic models and fiscal policy -- 13. Basic macroeconomic relationships -- 14. The aggregate expenditures model -- 15. Aggregate demand and aggregate supply -- 16. Fiscal policy, deficits, and debt -- pt. VI. Money, banking, and monetary policy -- 17. Money, banking, and financial institutions -- 18. Money creation -- 19. Interest rates and monetary policy -- 20. Financial economics -- pt. VII. Extensions and issues -- 21. Extending the analysis of aggregate supply -- 22. Current issues in macro theory and policy.