Table of Contents

PART 1. INTRODUCTION 1. Ten lessons from economics 2. Thinking like an economist 3. Interdependence and the gains from trade PART 2. SUPPLY AND DEMAND I: HOW MARKETS WORK 4. The market forces of supply and demand 5. Elasticity and its application 6. Supply, demand and government policies PART 3. THE DATA OF MACROECONOMICS 7. Measuring a nations income 8. Measuring the cost of living PART 4. THE REAL ECONOMY IN THE LONG RUN 9. Production and growth 10. Saving, investment and the financial system 11. The basic tools of finance 12. Unemployment and its natural rate PART 5. MONEY AND PRICES IN THE LONG RUN 13. The monetary system 14. Money growth and inflation PART 6. THE MACROECONOMICS OF OPEN ECONOMIES 15. Open-economy macroeconomics: Basic concepts 16. A macroeconomic theory of the open economy PART 7. SHORT-RUN ECONOMIC FLUCTUATIONS 17. Aggregate demand and aggregate supply 18. The influence of monetary and fiscal policy on aggregate demand 19. The short-run trade-off between inflation and unemployment PART 8. FINAL THOUGHTS 20. Five debates over macroeconomic policy Appendix - Annual data 1955-2008 for the New Zealand economy Glossary Suggestions for reading Index