Includes bibliographical references and index.

Contents: Introduction: Economics: foundations and models -- Appendix: Using graphs and formulas -- Trade-offs, comparative advantage and the market system -- Where prices come from: the interaction of demand and supply -- Economic efficiency, government price setting and taxes -- Appendix: Quantitative demand and supply analysis -- Firms in the domestic and international economics: Firms, the stock market and corporate governance -- Appendix: Tools to analyze firms' financial information -- Comparative advantage and the gains from international trade -- Appendix: Multinational firms -- Macroeconomic foundations and long-run growth: GDP: Measuring total production and income -- Unemployment and inflation -- Economic growth, the financial system, and business cycles -- Long-run economic growth: sources and policies -- Short-run fluctuations: Output and expenditure in the short run -- Appendix: The Algebra of macroeconomic equilibrium -- Aggregate demand and aggregate supply analysis -- Appendix: Macroeconomic schools of thought -- Monetary and fiscal policy: Money, banks, and the Federal reserve system -- Monetary policy -- Fiscal policy -- Appendix: A Closer look at the multiplier -- Inflation, unemployment, and Federal reserve policy -- The International economy: Macroeconomics in an open economy -- The International financial system -- Appendix: The Gold Standard and the Bretton Woods system.