Page 17 - Krugmans Economics for AP Text Book_Neat

FYI: International Evidence of Monetary Neutrality 318 Rational Expectations 352
Module 32 AP Review 319 Real Business Cycles 352
Module 35 AP Review 353
Module 33 Types of Inflation, Disinflation, and
Deflation 321 Module 36 The Modern Macroeconomic
Money and Inflation 321 Consensus 355
The Classical Model of Money and Prices 321 The Modern Consensus 355
The Inflation Tax 324 Is Expansionary Monetary Policy Helpful in Fighting
Recessions? 355
The Logic of Hyperinflation 325
FYI: Zimbabwe’s Inflation 326 Is Expansionary Fiscal Policy Effective in Fighting
Recessions? 356
Moderate Inflation and Disinflation 327
Can Monetary and/or Fiscal Policy Reduce
The Output Gap and the Unemployment Rate 328 Unemployment in the Long Run? 356
Module 33 AP Review 329
Should Fiscal Policy Be Used in a Discretionary Way? 356
Should Monetary Policy Be Used in a Discretionary
Module 34 Inflation and Unemployment: Way? 357
The Phillips Curve 331 FYI: Supply-Side Economics 357
The Short-Run Phillips Curve 331 The Clean Little Secret of Macroeconomics 359
Inflation Expectations and the Short-Run FYI: After the Bubble 359
Phillips Curve 333
Module 36 AP Review 360
FYI: From the Scary Seventies to the Nifty Nineties 334
Section 6 Review 361
Inflation and Unemployment in the Long Run 335
The Long-Run Phillips Curve 335
Section 7
The Natural Rate of Unemployment, Revisited 337
Economic Growth and Productivity 367
FYI: The Great Disinflation of the 1980s 337
The Costs of Disinflation 338
Module 37 Long-run Economic Growth 368
Deflation 338
Comparing Economies Across Time and Space 368
Debt Deflation 338
Real GDP per Capita 368
Effects of Expected Deflation 339
FYI: India Takes Off 370
Module 34 AP Review 341
Growth Rates 371
FYI: The Walmart Effects 372
Module 35 History and Alternative Views of The Sources of Long-run Growth 372
Macroeconomics 343
The Crucial Importance of Productivity 372
Classical Macroeconomics 343
Explaining Growth in Productivity 373
Money and Price Level 343
Module 37 AP Review 374
The Business Cycle 344
The Great Depression and the Keynesian Revolution 344
Module 38 Productivity and Growth 376
Keynes’s Theory 344
Accounting for Growth: The Aggregate Production
Policy to Fight Recessions 346 Function 376
FYI: The End of the Great Depression 346
What About Natural Resources? 380
Challenges to Keynesian Economics 347
FYI: The Information Technology Paradox 381
The Revival of the Monetary Policy 347
Success, Disappointment, and Failure 381
Monetarism 348
East Asia’s Miracle 382
Inflation and the Natural Rate of Unemployment 350
Latin America’s Disappointment 383
The Political Business Cycle 351
Africa’s Troubles 383
Rational Expectations, Real Business Cycles, and New FYI: Are Economies Converging? 384
Classical Macroeconomics 351
Module 38 AP Review 385

CONTENTS xv