Current Population Survey, 119
Curve,in graph, 36–37
area, below or above,
calculation, 41
horizontal and vertical,
slopes of, 38
linear, slope of, 37–38
maximum and minimum
points, 40–41
nonlinear, slope of, 39–40
Cyclical unemployment,130,
328–329
Cyclically adjusted budget
balance,297–299
D
Damon, Matt, 5
David, Paul, 379
De Beers, 570, 583, 609–613
Deadweight loss,90, 92,
506–508, 618
Debt, 300–305. See alsoFederal
debt
default, 226, 301, 305
deflation, 338–339
in practice, 301–303
Debt deflation,338–339
Debt-GDP ratio,301–303
Decreasing returns to scale,
563
Deductible, 785
Default,226, 301, 305
Deficit. SeeBudget deficit
Deflation,12–13, 139
debt, 338–339
effects, 339 –341
Defoe, Daniel, 16
Delta (change in), 159
Demand curve,49–56
consumer surplus and,
483–488
demand schedule, 49–50
individual, 55–56
market, 55
movement along, 51–52
price elasticity of demand
and, 471–472
rightward versusleftward
shifts, 52–53
shift effects, 71–72
shifts, 50–56, 444
Demand price,89–90
Demand schedule,49–50
Demand shock,191–197
economic policy, 200
negative, 172, 194–195
positive, 194–195
short-run versuslong-run
effects, 194 –195
versussupply shock,
193 –194, 197
Demand-pull inflation, 327
Dependent variable,35–36,
460
Deposit insurance, 246
Depositors, 228–229
Depreciates,420–424, 436
Depreciation,398, 531–532
Depressions,10 –11. See also
Great Depression
Derived demand, 681
Detroit Free Press, 124
Devaluation,436–437
Differentiated product, in
monopolistic
competition, 575
Diminishing marginal rate
of substitution, 795
Diminishing marginal utility,
513
Diminishing returns effect, 554
Diminishing returns to an
input, 545
Diminishing returns to labor,
545
Diminishing returns to
physical capital,
374 –377
Disabled workers, 119
Discount rate,263–264
Discount window,246 –247,
263
Discouraged workers, 120
Discretionary fiscal policy,
212, 356–357
Discretionary monetary
policy,348, 357–359
Discrimination, income distri-
bution and, 714–715
Diseconomies of scale,
562–563
Disinflation,139, 327–329
costs of, 338
1980s, 337
Disposable income, 105
aggregate consumption
function, 165–166
current, 161–164
future, 165
government budget, 204
MPC, MPS, 159–160
Diversification,225, 227
Dividends, 108, 211
Dixies, 234
Dollar (U.S.)
Euro comparison, 407
exchange rate, 419–426
history of, 234
Dominant strategy, 646
Dominant strategy equilibrium,
646
Double coincidence of wants,
232
Double-counting, 107–108
Duopolist, 638
Duopoly,638–640E
Early childhood intervention,
poverty and, 764
Earned Income Tax Credit
(EITC), 769East Asia
economic growth, 380–382
human capital, 386
East Germany, structural
unemployment, 132
ECB (European Central Bank),
253
Eckaus, Richard, 101
Economic aggregates, 5
Economic costs, 136–138
Economic growth,13 –14,
20–21, 366–371. See
alsoLong-run economic
growth
Africa, 381–383
aggregate production
function, 374–378
climate change, 392–393
comparing economies,
366–370
East Asia, 380–381
environment, 390–393
government, 387–389
growth rates, 369–370
Latin America, 381
long-run, sources, 370–371
natural resources, 378,
389–390
oil consumption, 391
rate differences, 385–389
real GDP per capita, 366–368
Rule of 70, 369
sustainability, 389–393
unemployment, 122–123
Economic inequality, 764–768
Economic insecurity, 768
Economic performance,
measuring
circular flow, 102–106
gross domestic product,
106 –110, 112–116
inflation, 134–139, 142–147
national accounts, 102–110
price indexes, 142–147
unemployment, 118–124,
126 –132
Economic policy. See alsoFiscal
policy; Monetary policy
AD-AS model, 199–207
demand shocks, 200
fiscal policy, 202–207
macroeconomic, 199–201
stabilization, 199–201
supply shocks, 200–201
Economic profit,531–533,
539, 586
Economic theories. See
Macroeconomic models
Economics,2, 6–8
Economies of scale,562, 571
The Economist,425–426
Economists, 7–8
Economy, 2
Edison, Thomas Alva, 387
Education, 374, 380–383, 386,
388“The Effects of Government
Taxes and Transfers on
Income and Property”
(U.S. Census Bureau),
770
Efficiency wages,130, 714
Efficiency-wage model, 714
Efficient,17–18
equity and, 499
market and, 496–499
Efficient in allocation, 18
Efficient in production, 18
Eisenhower, Dwight David, 54
EITC (Earned Income Tax
Credit), 769
Elastic,466–471
Elasticity, 460
cross-price elasticity of
demand, 475–476, 480
income elasticity of supply,
476, 480
midpoint method, 462–464
price discrimination and, 626
price elasticity of demand,
457, 460–463,
466–473, 480
price elasticity of supply,
477–480
Electricity, 379
Emissions tax,732–734
Employed, 119
Employment,12. See also
Unemployment
Energy Policy Act, 75, 596
England.SeeBritain
Entrepreneurship,3, 680
Environment, economic
growth, 390–393
Environmental standards,
731–732
Equilibrium,66–69
market, 67
shifts, 71–74
Equilibrium exchange rate,
421–423
Equilibrium interest rate,
273–274, 277–280
Equilibrium price,66–69,
71–75
Equilibrium quantity,66–67,
71–74
Equilibrium value of the
marginal product, 712
An Essay on the Principle of
Population(Malthus),
378, 546
Ethanol, supply and demand
curve shifts and, 75
EU (European Union), 653
Euro, 134
creation of, 435–436
dollar comparison, 407
exchange rates, 419–423
Europe
carbon dioxide emissions,
392INDEX I-3