equilibrium, 422–423
exchange rate, 419–427
Foreign exchange reserves,
430–432
Fossil fuel consumption, 392
Franc, 134, 436
France
consumer price index, 145
economic growth, 369, 382
Euro, 134
government spending, tax
revenue, 202
Freddie Mac, 257
Free entry and exit,570, 575
Free-rider problem, 745
Frictional unemployment,
127–128, 130
Friedman, Milton, 165–166,
333, 347–350, 355
Frisch, Ragnar, 343
Funny money, 221
Future disposable income, 165
G
Gains from trade,23–29, 232
Game theory, 644
prisoner’s dilemma, 644–647
repeated interaction,
647–649
tacit collusion, 647–649
Gates, Bill, 5, 227
GDP.SeeGross domestic
product
GDP deflator, 146
aggregate demand, 172–173
Great Depression, 188
“GDP: One of the Great
Inventions of the 20th
Century” (Department
of Commerce), 113
GDP per capita (Gross
domestic product per
capita), 115
General Motors, jobs, 126–127
The General Theory of
Employment, Interest,
and Money(Keynes),
344 –347
Germany
hyperinflation, 136, 325
marc, 436
real GDP per capita growth
rate, 382
structural unemployment,
132
Giffen goods, 459–460
Gini coefficient, 765
Glass-Steagall Act, 256–257
Global savings glut, 416
Global warming, 392–393
GNP (gross national product),
412
Goods.See alsoPrivate goods;
Public goods
artificially scarce, 751–752
characteristics of, 743–744
inferior, 54, 460, 476
normal, 53, 460, 476
ordinary, 795
types of, 744
Government
climate change, 393
economic growth, 387–389
human capital, 388
infrastructure, 387
intervention, 388–389
market failure and, 723
physical capital, 387–388
political stability, 388–389
price controls, 77–85
property rights, 388–389
quantity controls, 88–93
technology, 388
Government borrowing,105,
202, 280
Government budget. SeeFederal
budget
Government debt. See also
Federal debt
defaulting, 301, 305
Government deficits. SeeBudget
deficit
Government policy. See also
Economic policy; Fiscal
policy; Monetary policy
AD-AS curve, 194
aggregate demand curve, 176
unemployment rate, 132
Government purchases of
goods and services,
105, 202–203, 205,
209–210
Government spending,
202–205
GDP, 209–210
tax revenue, 202
United States, 202–204
Government transfers,105,
203–205, 210–211
Grains, price floors, 82–84
Graphs
curves, 36–41
numerical, 42–44
perfect competition and,
590–596
two-variable graphs, 34–35
variables and economic mod-
els, 34
Great Depression, 10
aggregate demand curve, 172
aggregate output, price level,
188
debt deflation, 339
deflation, 139
demand shock, 191–192
end of, 177, 346
Federal Reserve System,
256–257
GDP deflator, 188
Keynesian Revolution,
344 –347
multiplier, 161national accounts, 113
stock market crash, 175–176
Works Progress
Administration, 212
World War II, 177, 346
world-wide influence, 438
Greece, national debt, 301
Greenhouse gas emissions,
392–393
Greenspan, Alan, 255, 358
Gross domestic product
(GDP),106 –110
calculating, 107, 109
components of, 108–109
debt-GDP ratio, 301–303
domestically produced final
goods and services,
107–108
double-counting, 107–108
final goods and services,
106 –107
firms in the economy, 108
GDP deflator, 146, 172–173,
188
government spending,
209–210
government spending, tax
revenue, 202
versusgross national product,
412
imports, exports, 105–106,
108 –109
included/not included, 110
interpreting, 112–116
measuring, 106–108
net exports, 108–109
nominal, 114, 116
real, 112–116
versusreal GDP, 113
U.S. per capita, 13
value added, 107
Gross domestic product
(GDP) per capita,115.
See alsoReal gross
domestic product per
capita
Gross national product (GNP),
412
Growth. SeeEconomic growth
Growth accounting, 376
Growth policy, 385–393
Growth rates, 369–370. See also
Economic growth
differences, 385–389
human capital, 386
physical capital, 385–386
technological progress,
386–387H
“Haircut,” value of debt, 305
Hamill Manufacturing, margin-
al productivity theory
and, 693
Hanks, Tom, 16
Hedge fund, 258INDEX I-5
Herfindahl–Hirschman
Index,573 –574
Herriot, James, 65
Hicks, John, 347
Hitler, Adolf, 344
Home construction, boom to
bust, 157, 167
Hong Kong, exchange rate, 429
Hoover, Herbert, 10
Hoovervilles, 10
Horizontal axis, 35
Horizontal curve, slope of, 38
Horizontal intercept, 37
Horizontal relationship, 37
Horizontal sum, 55
Household, 103
Housing boom, 157, 169,
258–259
Housing bubble, 258–259,
358–359, 416
Human capital,222, 680, 712
aggregate production func-
tion, 374–378
East Asia, 380–381
government, 388
growth rates, 386
productivity, 371
Hyperinflation, 136–137,
325–327I
Iceland, monetary neutrality,
318
Illegal activity, price floors, 85
Illiquid, 226
Imperfect competition,573,
637
labor market in, 700–704
product market in, 700
Imperfect substitutes, 669
Imperfectly competitive
markets, 180–181
Implicit cost,530–531
Implicit cost of capital, 532
Implicit liabilities,303–304
Imports,105 –106, 108 –109
In kind, 137
Incentives,2–3
Income
demand curve, 53–54
disposable, 105, 159–166,
204
inequality, 764–768
national (SeeNational
income)
price determination,
158 –170
real, 135, 459
redistribution, 771–772
world-wide, 368
Income distribution theories,
711–717
Income effect,459–460
Income elasticity of demand,
456–457
Income tax, 202–203