Front and back end papers, column 1, row 8: the title should read “2000 dollars” not “2002 dollars.”
Chapter 3, p. 60, Figure 3.9 legend: change “shortage” to “surplus” in line 3.
Chapter 6, p. 122, table for Q8: change “-8” to “8.” That is, delete the minus sign before 8.
Chapter 8, p. 150: Below graph 8.1 in the 2nd column: The MPS formula is repeated twice rather than giving the MPS and MPC formulas. Replace first MPS formula with MPC formula provided below.
MPC = change in consumption/change in income.
Chapter 11, p. 216, column 2, line 1: “public debt” should be “budget deficit.”
Chapter 14, p. 270: The first bulleted point beneath The Taylor Rule should read “If real GDP rises by 1 percent above potential GDP, the Fed should raise the Federal funds rate (in real terms) by a percentage point.”
Back end papers, row 9, years 1982-1988: change the numbers to -1.9, 4.5, 7.2, 3.5, 4.1, 3.4, and 4.1.
Updates
Chapter 5, p. 98
a) In 2007 the European Union (EU) admitted Bulgaria and Romania as new members, bringing total EU membership to 27 nations.
b)In 2007 the number of nations using the euro rose to 13 with the addition of Slovenia to the Euro Zone.
