• The seventh edition contains extensively updated coverage of relevant, current Economic topics. A few of the chapters with the most comprehensive updates include: 12 – The Design of the Tax System, 20 – Income Inequality and Poverty, 23 – Measuring a Nation's Income, 24 – Measuring the Cost of Living, 25 – Production and Growth, & 28 – Unemployment.
• MindTap, the most advanced online environment for principles focuses students within a learning path while allowing instructors to create the course they want using publisher provided, instructor created or third party materials. Adaptive Test Prep, a new enhancement, improves student confidence before exams by providing 3,800 test bank type questions and 1,700 Quick Coach Videos to ensure student success. Graph Builder allows students to draw graphs from scratch, right in the interactive book. 25 new Graph Builder exercises are available in Summer 2016.
• Aplia, the best-selling online homework solution, has been enhanced for the seventh edition, including an optimized mobile experience, allowing students to access content on their mobile devices anywhere and anytime and closer alignment of Aplia and the textbook with End-of-Chapter text questions.

Part 1 INTRODUCTION

Chapter 1 Ten Principles of Economics

1-1 How People Make Decisions

1-2 How People Interact

1-3 How the Economy as a Whole Works

1-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 2 Thinking Like an Economist

2-1 The Economist as Scientist

2-2 The Economist as Policy Adviser

2-3 Why Economists Disagree

2-3a Differences in Scientific Judgments

2-4 Let’s Get Going

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Appendix Graphing: A Brief Review

Graphs of a Single Variable

Graphs of Two Variables: The Coordinate System

Curves in the Coordinate System

Slope

Cause and Effect

Chapter 3 Interdependence and the Gains from Trade

3-1 A Parable for the Modern Economy

3-2 Comparative Advantage: The Driving Force of Specialization

3-3 Applications of Comparative Advantage

3-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part II How Markets Work

Chapter 4 The Market Forces of Supply and Demand

4-1 Markets and Competition

4-2 Demand

4-3 Supply

4-4 Supply and Demand Together

4-5 Conclusion: How Prices Allocate Resources

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 5 Elasticity and Its Application

5-1 The Elasticity of Demand

5-2 The Elasticity of Supply

5-3 Three Applications of Supply, Demand, and Elasticity

5-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 6 Supply, Demand, and Government Policies

6-1 Controls on Prices

6-2 Taxes

6-3 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part III Markets and Welfare

Chapter 7 Consumers, Producers, and the Efficiency of Markets

7-1 Consumer Surplus

7-2 Producer Surplus

7-3 Market Efficiency

7-4 Conclusion: Market Efficiency and Market Failure

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 8 Application: The Costs of Taxation

8-1 The Deadweight Loss of Taxation

8-2 The Determinants of the Deadweight Loss

8-3 Deadweight Loss and Tax Revenue as Taxes Vary

8-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 9 Application: International Trade

9-1 The Determinants of Trade

9-2 The Winners and Losers from Trade

9-3 The Arguments for Restricting Trade

9-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part IV The Data of Macroeconomics

Chapter 10 Measuring a Nation’s Income

10-1 The Economy’s Income and Expenditure

10-2 The Measurement of GDP

10-3 The Components of GDP

10-4 Real versus Nominal GDP

10-5 Is GDP a Good Measure of Economic Well-Being?

10-6 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 11 Measuring the Cost of Living

11-1 The Consumer Price Index

11-2 Correcting Economic Variables for the Effects of Inflation

11-3 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part V The Real Economy in the Long Run

Chapter 12 Production and Growth

12-1 Economic Growth around the World

12-2 Productivity: Its Role and Determinants

12-3 Economic Growth and Public Policy

12-4 Conclusion: The Importance of Long-Run Growth

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 13 Saving, Investment, and the Financial System

13-1 Financial Institutions in the U.S. Economy

13-2 Saving and Investment in the National Income Accounts

13-2a Some Important Identities

13-3 The Market for Loanable Funds

13-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 14 The Basic Tools of Finance

14-1 Present Value: Measuring the Time Value of Money

FYI: The Magic of Compounding and the Rule of 70

14-2 Managing Risk

14-3 Asset Valuation

14-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 15 Unemployment

15-1 Identifying Unemployment

15-2 Job Search

15-3 Minimum-Wage Laws

15-4 Unions and Collective Bargaining

15-5 The Theory of Efficiency Wages

15-6 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part VI Money and Prices in the Long Run

Chapter 16 The Monetary System

16-1 The Meaning of Money

16-2 The Federal Reserve System

16-3 Banks and the Money Supply

16-4 The Fed’s Tools of Monetary Control

16-5 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 17 Money Growth and Inflation

17-1 The Classical Theory of Inflation

17-2 The Costs of Inflation

17-3 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part VII The Macroeconomics of Open Economies

Chapter 18 Open-Economy Macroeconomics: Basic Concepts

18-1 The International Flows of Goods and Capital

18-2 The Prices for International Transactions: Real and Nominal Exchange Rates

18-3 A First Theory of Exchange-Rate Determination: Purchasing-Power Parity

18-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 19 A Macroeconomic Theory of the Open Economy

19-1 Supply and Demand for Loanable Funds and for Foreign-Currency Exchange

19-2 Equilibrium in the Open Economy

19-3 How Policies and Events Affect an Open Economy

19-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part VIII Short-Run Economic Fluctuations

Chapter 20 Aggregate Demand and Aggregate Supply

20-1 Three Key Facts about Economic Fluctuations

20-2 Explaining Short-Run Economic Fluctuations

20-3 The Aggregate-Demand Curve

20-4 The Aggregate-Supply Curve

20-5 Two Causes of Economic Fluctuations

20-5a The Effects of a Shift in Aggregate Demand

20-6 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 21 The Influence of Monetary and Fiscal Policy on Aggregate Demand

21-1 How Monetary Policy Influences Aggregate Demand

21-2 How Fiscal Policy Influences Aggregate Demand

21-3 Using Policy to Stabilize the Economy

21-4 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Chapter 22 The Short-Run Trade-off between Inflation and Unemployment

22-1 The Phillips Curve

22-2 Shifts in the Phillips Curve: The Role of Expectations

22-3 Shifts in the Phillips Curve: The Role of Supply Shocks

22-4 The Cost of Reducing Inflation

22-5 Conclusion

Summary

Key Concepts

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Part IX Final Thoughts

Chapter 23 Six Debates over Macroeconomic Policy

23-1 Should Monetary and Fiscal Policymakers Try to Stabilize the Economy?

23-2 Should the Government Fight Recessions with Spending Hikes Rather Than Tax Cuts?

23-3 Should Monetary Policy Be Made by Rule Rather Than by Discretion?

23-4 Should the Central Bank Aim for Zero Inflation?

23-5 Should the Government Balance Its Budget?

23-6 Should the Tax Laws Be Reformed to Encourage Saving?

23-7 Conclusion

Summary

Questions for Review

Quick Check Multiple Choice

Problems and Applications

Glossary

Index

N. Gregory Mankiw, Harvard University

N. Gregory Mankiw is Robert M. Beren Professor of Economics at Harvard University. For 14 years he taught EC10 Principles, the most popular course at Harvard. He studied economics at Princeton University and MIT. Prof. Mankiw is a prolific writer and a regular participant in academic and policy debates. His research includes work on price adjustment, consumer behaviour, financial markets, monetary and fiscal policy, and economic growth. His published articles have appeared in academic journals such as the American Economic Review, Journal of Political Economy, and Quarterly Journal of Economics. His work has also appeared in more widely accessible forums, including The New York Times, The Washington Post, The Wall Street Journal, and Fortune. Prof. Mankiw has been a research associate of the National Bureau of Economic Research, an adviser to the Federal Reserve Bank of Boston and the Congressional Budget Office, and a member of the ETS test development committee for the advanced placement exam in economics. From 2003 to 2005, he served as chairman of the President’s Council of Economic Advisers.