PART I: WHAT IS ECONOMICS? Introduction. The Ordinary Business of Life. First Principles. Economic Models: Trade-offs and Trade. Appendix: Graphs in Economics. PART II: SUPPLY AND DEMAND. Supply and Demand. Price Controls and Quotas: Meddling with Markets. International Trade. Appendix: Consumer and Producer Surplus. PART III: INTRODUCTION TO MACROECONOMICS. Macroeconomics: The Big Picture. Tracking the Macroeconomy. Unemployment and Inflation. PART IV: LONG-RUN ECONOMIC GROWTH. Long-Run Economic Growth. Savings, Investment Spending, and the Financial System. PART V: SHORT-RUN ECONOMIC FLUCTUATIONS. Income and Expenditure. Appendix: Deriving the Multiplier Algebraically. Aggregate Demand and Aggregate Supply. PART VI: STABILIZATION POLICY. Fiscal Policy. Appendix: Taxes and the Multiplier. Money, Banking, and the Federal Reserve System. Monetary Policy. Appendix: Reconciling Two Models of the Interest Rate. Inflation, Disinflation, and Deflation. Crises and Consequences. PART VII: EVENTS AND IDEAS. Events and Ideas. PART VIII: THE OPEN ECONOMY. Open-Economy Macroeconomics.