CONTENTS Supplements ii Text Overview iii Content Correlation Chart iv Part 1 The Economic Way of Thinking 1 The Economic Approach 1 2 Some Tools of the Economist 7 Part 2 Markets and Government 3 Demand, Supply, and the Market Process 22 4 Demand and Supply: Applications and Extensions 39 5 Difficult Cases for the Market and the Role of Government 47 6 The Economics of Political Action 59 Part 3 Core Macroeconomics 7 Taking the Nation's Economic Pulse 66 8 Economic Fluctuations, Unemployment, and Inflation 76 9 An Introduction to Basic Macroeconomic Markets 89 10 Dynamic Change, Economic Fluctuations, and the AD-AS Model 95 11 Fiscal Policy: The Keynesian View and Historical Development of Macroeconomics 101 12 Fiscal Policy, Incentives, and Secondary Effects 106 13 Money and the Banking System 111 14 Modern Macroeconomics and Monetary Policy 125 15 Macroeconomic Policy, Economic Stability, and the Federal Debt 130 16 Creating an Environment for Growth and Prosperity 136 17 The Economics of Development 142 Part 4 International Economics 18 Gaining from International Trade 147 19 International Finance and the Foreign Exchange Market 155 Part 6 Special Topics – (page numbers are different as they are based on core IM) 1 Government Spending and Taxation 259 2 The Economics of Social Security 263 3 The Stock Market: Its Function, Performance, and Potential as an Investment Opportunity 267 4 Keynes and Hayek: Contrasting Views on Sound Economics and the Role of Government 270 5 The 2020 COVID-19 Recession: Cause, Response, and Implications for the Future 272 6 The Great Recession of 2008–2009: Causes and Response 275 7 Lessons from the Great Depression