AD. See Aggregate demand
AE. See Aggregate expenditure
Aggregate demand, 19, 55, 57–58
Aggregate demand (AD), 54–55
Aggregate expenditure (AE), 43–55
Aggregate market model, 66–68
business cycle, 70–72
fiscal policy multipliers revisited, 68–69
long-run aggregate supply, 59–63
short-run aggregate supply, 63–66
simulated aggregate demand, 57–58
American Recovery and Reinvestment Act, 76
Austrian economics, 89, 90, 91
The Austrian School, 89–91
Balanced-budget multiplier, 54
The Black Obelisk (Maria, Erich), 118
Business cycle, 70–72
Capital Based Macroeconomics (CBM), 123–125
CBM. See Capital Based Macroeconomics
Central planning, 10–14
The Chicago school, 88–89
Classical economics versus Keynesian economics, 73
The classical school, 109
COL. See Cost of living
COLA. See Cost of living adjustment
Consumer expenditure, 44–48
Consumer Price Index (CPI), 22
Consumption function, 44, 45, 46
Cost of living (COL), 24, 25
Cost of living adjustment (COLA), 25
Cost-push inflation, 21
The Count of Monte Cristo (Dantès, Edmond), 1
CPI. See Consumer Price Index
Crowding-out, 83
Deflator Price Index (DPI), 24
Demand and supply, 8, 19
Demand-pull inflation, 21
Derived demand effect, 126
Discount rate, 93, 104, 107, 109
Donne, John, 40
DPI. See Deflator Price Index
Economic growth, 31–36
Economic Growth and Tax Relief Reconciliation Act (EGTRRA), 75
EGTRRA. See Economic Growth and Tax Relief Reconciliation Act
The Encyclopedia of Money (Allen, Larry), 118
Equilibrium, 7
ERR. See Excess reserves ratio
Excess reserves ratio (ERR), 102
The federal funds market, 104–108
Federal Open Market Committee (FOMC), 104
Ferris Bueller’s Day Off, 86
Fiscal policy
Austrian School, 89–91
Chicago School, 88–89
discretionary fiscal policy, 78–80
and economic performance, 91–92
fiscal budget balance, 74–77
shortcomings of, 80–85
supply-side school, 85–88
Treasury bond auctions, 77–78
Fiscal policy lags, 82, 91
Fiscal policy multipliers, 52–54, 52–55
FOMC. See Federal Open Market Committee
Fractional reserve banking, 100
Free market capitalism, 10–14
Free trade, 16–17
Friedman, Milton, 21, 120
Garrison, Roger, 2, 123
GDP. See Gross domestic product
Greenspan, Alan, 119
Gross domestic product (GDP), 14, 21
Hayek, F.A., 43
Inflation, 21–28
Interest on reserves, 113
Interest rates, 28–31
JGTRRA. See Jobs and Growth Tax Relief Reconciliation Act
Jobs and Growth Tax Relief Reconciliation Act (JGTRRA), 76
Keynesian economics versus classical economics, 73
The Keynesian school, 78, 80, 111
Laffer curve, 86
Law of supply and demand, 7–10
Long-run aggregate supply (LRAS), 57, 59–63
LRAS. See Long-run aggregate supply
Macroeconomic indicators
economic growth, 31–36
inflation, 21–28
interest rates, 28–31
synthesis, 40–41
unemployment, 36–40
Macroeconomics
demand and supply, 19
of free trade, 16–17
government budget deficits, 18–19
government provided healthcare, 14–16
Marginal cost, 7
Marginal revenue product of labor (MRPL), 10
Microeconomics
demand, 3–5
supply, 5–7
Monetary policy, 109–114
banking, 98–101
federal funds market, 104–108
federal reserve system, 103–104
market for money, 95–98
money, 93–95
multiple deposit creation, 101–103
in practice, 114–118
Money demand, 95
Money velocity, 96
MRPL. See Marginal revenue product of labor
Net foreigner expenditure, 48–49
Nominal interest rate, 28, 29
Okun’s law, 41
Open market operations, 111, 112
PCEPI. See Personal Consumption Expenditure Price Index
Personal Consumption Expenditure Price Index (PCEPI), 24
Phillips curve, 41
PL. See Price level
PPF. See Production Possibilities Frontier
Price ceiling or price floor, 11, 12
Price elasticity of supply, 7
Price level (PL), 22
Principles of Economics (Menger, Carl), 89
Production Possibilities Frontier (PPF), 14
Rational expectations, 88
Regression analysis, 6
Required reserves ratio, 101
Required reserves ratio (rrr), 101
The Road to Serfdom, (Hayek), 120
Robinson, Joan, 1
rrr. See Required reserves ratio
The Shawshank Redemption (movie), 94
Short-run aggregate supply (SRAS), 63–66
SPF. See Survey of Professional Forecasters
SRAS. See Short-run aggregate supply
Stein, Ben, 86
Supply-side economics, 59, 85, 86
Survey of Professional Forecasters (SPF), 30
TARP. See Troubled Asset Relief Program
Tax-cut multiplier, 53
TIPS. See Treasury Inflation Protected Securities
Trade balance, 49
Treasury Inflation Protected Securities (TIPS), 30
Troubled Asset Relief Program (TARP), 76
Unemployment, 36–40
WAP. See Working age population
The Way the World Works, 85
Working age population (WAP), 36, 37