Research and development
(R&D),386–387
Reserve ratio, 244
Reserve requirements,246,
263
Reserves, 248–249
Resources,3–4
natural, 378
scarce, 3–4, 571
wasted, 80–81, 84–85
Retained earnings, 167
Retirees, 119
Returns to scale, 562–564
Reuters, 305
Revaluation,436–437
RFC (Reconstruction Finance
Corporation), 256–257
Rhoades, Cecil, 570
Rival in consumption, 743
Roastmagazine, 54
Rockefeller, John D., 255
Rogoff, Kenneth, 351
Romer, Christina, 313
Romer, David, 313
Roosevelt, Franklin Delano,
245, 256, 346
Rosetta, 84
Rule of 70, 369
Russia
bond default, 305
coffee, tea, 54
S
S&L (savings and loan), 257
Sachs, Jeffrey, 383
Sales tax, 202–203
Salt, Veruca, 239
Sanders, Bernie, 393
Savings
capital flow, 413, 415 – 416
investment spending, 222–224
private, 105, 281, 415–416
Savings and loan (S&L,
thrift), 257
Savings and loan crisis of the
1980s, 257
Savings-investment spending
identity,222–224, 284
Scale effects, 562
Scale, returns to, 562–563
Scandinavian Sandwich, 85
Scarce,3–4
Scatter diagram,42–43
School lunches, price floors
and, 84
Schumpeter, Joseph, 344
Schwartz, Anna, 347
Screening,783–784
Secret Service, 221
Securitization,227, 259
Seignorage, 324–326
Self-correcting,195 –196, 199
Self-sufficiency, 23–24
Sensitivity to price, 626
Sherman Antitrust Act of 1890,
653, 755
Shifts of the aggregate demand
curve, 174–177, 444
demand shock, 191–194
existing stock of physical
capital, 176
expectation changes, 175
fiscal policy, 176–177
government policy, 176
government spending, 204
monetary policy, 177
rightward versusleftward
shifts, 175
short-run effects, 191–192
wealth changes, 175–176
Shifts of the demand curve,
52–56, 444
effects, 71–72
equilibrium, 72
expectation changes, 54–55
income changes, 53–54
versusmovement along the
demand curve, 51–52
normal/inferior goods,
53–54
number of consumers, 55–56
related goods/services prices,
53
simultaneous supply curve
shifts, 73–74
substitutes, complements, 53
taste changes, 54
Shifts of the money demand
curve, 271–273, 444
Shifts of the short-run aggre-
gate supply curve,
181–184, 444
commodity prices, 182–183
nominal wages, 183
productivity, 183–184
rightward versusleftward
shifts, 182
supply shock, 192–194
Shifts of the supply curve,
60–65, 444
effects, 72–73
equilibrium, 73
expectation changes, 63
input prices, 62–63
versusmovement along the
supply curve, 62
number of producers, 63–64
related goods/services prices,
63
simultaneous demand curve
shifts, 73–74
substitutes/complements in
production, 63
technology changes, 63
Shocks, 438
demand, 172, 191–197, 200
price, 190
supply, 192–194, 197,
200–201, 332–333
Shoe-leather costs,136 –137
Short run, 542
Shortage,68–69Short-run aggregate supply
curve (SRAS)
classic model of the price
level, 322–323
Keynesian versusclassical
macroeconomics, 345
versuslong-run, 186–187
long-run macroeconomic
equilibrium, 194
money supply increase,
316 –317
movement along, 181
shifts of, 181–184, 444
Short-run costs
concepts and measures, 564
versuslong-run, 559–564
Short-run equilibrium aggre-
gate output,190 –193
Short-run equilibrium
aggregate price level,
190 –193
Short-run fluctuations, eco-
nomic growth, 400–401
Short-run individual supply
curve,594–595, 600
Short-run industry supply
curve,599–601
Short-run macroeconomic
equilibrium,190 –191
Short-run market equilibri-
um,600–601
Short-run Phillips curve
(SRPC),331–335
expected inflation, 333–334
supply shocks, 332–333
Short-term interest rates,
268–270
Shut-down price,593–595
Signaling, 784
Simple circular-flow diagram,
102–103
Single-price monopolist, 624
Sloan, Alfred, 670
Slope, 37
of horizontal and vertical
curves, 38
of linear curve, 37–38
maximum and minimum
points, 40–41
of nonlinear curves, 39–40
Smith, Adam, 23, 233
Smog, 391
Social insurance,202–204
Social insurance taxes, 202–203
Social Security, 147, 203–204,
303–304, 769
Social Security Administration,
304
Social Security trust fund, 304
Socially optimal quantity of
pollution, 725
Solar power, 392
Solow, Robert, 379
Sotheby’s, price-fixing, 655
South Africa, monetary neutral-
ity, 318South Korea
economic growth, 379–381
natural resources, 378
Spain, economic growth, 382
Specialization,23–24, 563
Spreading effect, 554
SRAS.SeeShort-run aggre-
gate supply curve
SRPC (short-run Phillips
curve),331–335
Stabilization policy,199 –201,
357
Stagflation(stagnation plus
inflation), 193, 334
Standardized product,
569–570
Starbucks, 47–48, 53–55
Stern, Nicholas, 392
Stewart, Jimmy, 245
Sticky wages, 180
Stimulus package, 2008, 211, 213
Stock,104, 224, 227
Stock bubble, 359
Stock market crash, 175–176
Stock of physical capital, 176
Store of value, 232
Strategic behavior, 647
Structural unemployment,
128–130, 132
Subletting, 80–81
Subprime lending,258–259
Substitutes,53, 57
in factor markets, 706–707
in production, 63
Substitution effect,458–459
Summer job, decline of, 699
Sunk cost,563–564
Supplemental Nutrition
Assistance Program, 769
Supply and demand model,
47–56
demand curve, 49–56
equilibrium, 49–56, 66–69
equilibrium shifts, 71–74
exchange rate, 429
price controls, 77–85
quantity control, 88–93
supply curve, 59–65
Supply curve,59–65
individual, 63–64
law of supply, 60
market, 64
movement along, 60–61
rightward versusleftward
shifts, 61
shift effects, 72–73
shifts, 60–65, 444
supply schedule, 59–60
Supply price, 90
Supply schedule,59–60
Supply shock,192–194, 197
versusdemand shock,
193 –194, 197
economic policy, 200–201
short-run Phillips curve,
332–333INDEX I-11