Table of Contents

Part 1 Introduction 1.Thinking Like an Economist2.Comparative Advantage: The Basis for Exchange3.Supply and Demand: An IntroductionPart 2 Competition and the Invisible Hand4. Elasticity5.Demand: The Benefit Side of the Market6.Perfectly Competitive Supply: The Cost Side of the Market7.Efficiency and Exchange8.The Quest for Profit and the Invisible HandPart 3 Market Imperfections9.Monopoly and Other Forms of Imperfect Competition10.Thinking Strategically11.Externalities and Property Rights12.The Economics of InformationPart 4 Economics of Public Policy13.Labor Markets, Poverty, and Income Distribution14.The Environment, Health, and Safety15.Public Goods and Tax PolicyPart 5 International Trade16.International Trade and Trade PolicyPart 6 Macroeconomics: Issues and Data 17.Macroeconomics: The Bird’s-Eye View of the Economy18.Measuring Economic Activity: GDP and Unemployment19.Measuring the Price Level and Inflation Part 7 The Long Run20.Economic Growth, Productivity, and Living Standards21.Workers, Wages, and Unemployment in the Modern Economy22.Saving and Capital Formation 23.Money, Prices, and the Federal Reserve 24.Financial Markets and International Capital Flows Part 8 The Short Run25.Short-term Economic Fluctuations: An Introduction 26.Aggregate Demand and Output in the Short Run 27.Stabilizing Aggregate Demand: The Role of the Fed 28.Inflation and Aggregate Supply Part 9 The International Economy 29. Exchange Rates and the Open Economy

About the Author

Robert H. Frank received his M.A. in statistics from the University of California at Berkeley in 1971, and his Ph.D. in economics in 1972, also from U.C. Berkeley. He is the Goldwin Smith Professor of Economics at Cornell University, where he has taught since 1972 and where he currently holds a joint appointment in the department of economics and the Johnson Graduate School of Management. He has published on a variety of subjects, including price and wage discrimination, public utility pricing, the measurement of unemployment spell lengths, and the distributional consequences of direct foreign investment. For the past several years, his research has focused on rivalry and cooperation in economic and social behaviour.



Professor Bernanke received his B.A. in Economics from Harvard University in 1975 and his Ph.D. in economics from MIT in 1979.  He taught at the Stanford Graduate School of Business from 1979 to 1985 and moved to Princeton University in 1985, where he was named the Howard Harrison and Gabrielle Snyder Beck Professor of Economics and Public Affairs, where he served as Chairman of the Economics Department.  He is a fellow of the American Academy of Arts and Sciences and the Econometrics Society.  He was named a member of the Board of Governors of the Federal Reserve in 2002 and became the chairman of the President's council of Economic Advisers in 2005.  In 2006 Ben Bernanke was selected to be the Chairman of the Federal Reserve Board.Professor Bernanke's intermediate textbook, with Andrew Abel, Macroeconomics, Fifth Edition (Addison-Wesley, 2004) is a best seller in its field.  He has authored more than 50 scholarly publications in macroeconomics, macroeconomic history, and finance.  He has done significant research on the causes of the Great Depression, the role of financial markets and institutions in the business cycle, and measuring the effects of monetary policy on the economy.  His two most recent books, both published by Princeton University Press, include Inflation Targeting: Lessons from the International Experience (with coauthors) and Essays on the Great Depression.  He has served as editor of the American Economic Review and was the founding editor of the International Journal of Central Banking.  Professor Bernanke has taught principles of economics at both Stanford and Princeton.