Includes bibliographies and index.

Part 1 An introduction to economics and the economy: the nature and method of economics; the economizing problem; understanding individual markets - demand and supply; pure capitalism and the market system; the mixed economy - private and public sectors; the United States in the global economy. Part 2 National income, employment and fiscal policy: measuring domestic output, national income and the price level; macroeconomic instability - unemployment and inflation; building the aggregate expenditures model; aggregate expenditures - the multiplier, net exports and government; aggregate demand and aggregate supply; fiscal policy. Part 3 Money, banking and monetary policy: money and banking; how banks create money.