[Joseph_E._Stiglitz,_Carl_E._Walsh]_Economics(Bookos.org) (1)

currency (continued)
inflation and, 510–11, 512–13, 773–74
curves, interpretation of, 49–50
cycles, business, 494–96, 638–48, 650–51,
844–48
see also fluctuations, business
cyclical unemployment, 502–3, 638, 641–43,
646, 648, 656, 821–22, 831
deadweight loss, 220, 221
debt, federal, 479, 480–81, 557, 560, 561, 840
alternative perspectives on, 841
“owe it to ourselves” argument and, 841
relative to GDP, 555, 559, 560, 561
Ricardian equivalence and, 841–42
World War II and, 840
decision making:
of government, 800–803
households, 534–35
see also choices
defense related research, 429
defense spending, 375, 376, 377, 558, 562,
595
deficit, federal, 548–54, 556–62, 837,
838–42
consequences of, 839–40
debt and, 479, 480–81, 555
entitlements and, 558
full-employment, 733–36
future generations and, 556, 557–58,
840–41, 842
Ricardian equivalence and, 841–42
sources of, 838–39
surpluses and, 557–61
taxes and, 842
traditional views of, 839–40
see also budget deficit
deficit, federal budget, 395–96
deficit, foreign, 555
deflation, 480–81, 512, 520, 855–57
costs of, 512
demand, 53–61, 67–69, 77–95
aggregate, see aggregate demand
capital market and, 200–201
computers and, 62
elasticity of, see elasticity of demand
excess, 68
factor, 182–84
income elasticity of, 107
for large cars, 60
for money, 607–12
pressures, 820–23
price and, 53–61, 70–71; see also price
elasticity of demand
relative elasticity of, 79–80
rent control and, 218–19
for small cars, 59–60
use of term, 54
vs. supply, 857–59
see also supply and demand, law of
demand curves, 53–61
asset, 876
budget constraints and, 110, 128
and changes in expectations, 58
and changes in taste, 58
complements and, 57–58
demographic effects and, 58
derivation of, 109–11, 182–84
elastic vs. inelastic, 79
income and, 57–58
for individuals, 54–55, 109–11
for labor, 182–84
linear, 98
long-run vs. short-run adjustments to, 87
market, 55–61, 67–69
movements along, 60–61
price changes and, 77–78, 109–11; see also
price elasticity of demand
for rent control, 92
shifts in, 55–61, 644–46
sources of shifts in, 57–58
substitutes and, 57–58, 78, 110
supply curves and, 86
demand deposits, 617, 619
demographic effects, demand curves and,
58
Denmark, 377
depreciation:
capital stock and, 590
exchange rates and, 577, 579, 762, 770–71
depression, 495
Depression, Great, see Great Depression
deregulation, 94, 298–99, 305
description of preferences, utility and,
113–18
developed countries, 795
LDCs vs., 798–99
development, 794–98
globalization and, 803–7
in Soviet Union, 809
sustainable, 601
see also LDCs
Digital Economist, 219
digital economy, see new economy
diminishing marginal rate of substitution,
127
diminishing marginal utility, 114–16
diminishing returns, 533
inputs and, 133–34
principle of, 34
production function and, 133
diminishing returns to scale, 144
direct expenditures, military and civilian,
595
discount rates, 629, 630, 718
discouraged workers, 501
discretionary expenditures, 562, 731–36
discrimination:
in labor market, 363–64
public policy toward, 364
statistical, 363
in wages, 363
disinflation, 700–701, 703
disinvestment, 675
disposable income, 536, 667–71
disruption and monetary policy, 743–45
dissaving, 199
distribution, 7, 14–15, 28, 432
exchange and, 224
see also income distribution; wealth distribution
distributional effects, 826
diversification, 869, 872–74, 885–86
dividends, 868
division of labor, see specialization
dollar:
-euro exchange rate, 579, 758–62, 788–89
exchange rates and, 579, 759–65, 772–74,
780–81, 783–85
supply and demand and, 759–65
trade deficit and, 577–80
dollarization, 772, 773–74
dominant strategies, 313, 316–18
dot-com bubble, 744–45
“dot-com” firms, 165
double-coincidence of wants, 616
Dow Jones Industrial Average, 874–76
drug industry, 268, 456
dual economy, 798
Dubner, Stephen, 343
dumping, 438–39
duopoly, 278
Du Pont Cellophane Case (1956), 300, 301,
303
duties, countervailing, 439
dynamic efficiency, 458
dynamic inconsistency, 846
earned-income tax credit, 385
East Asia miracle, 799–803
eBay, 5
e-commerce, 744–45
see also new economy
economic analysis, rational consumers and,
26–29
economic expansion, 640–43
economic growth, see growth
economic profits, 166–71
economic rent, 168–69
monopoly, 265, 292
economics:
automobiles and, see automobile
industry
behavioral, 119–21
A-18 ∂ INDEX