Updates to the Third Edition
The third edition includes substantial revisions to Chapter 13 to include an analysis of the potential impact of the COVID-19 Pandemic on the U.S. economy. It also includes additional material related to the Great Recession and the disinflation of the 1980s. Other historical cases receive only brief mention and some material has been simplified to make room for greater discussion of the impact of sticky prices in the commercial and retail toilet paper markets. Chapter 12 also now includes a short discussion of the possible long-term impact of the COVID-19 Pandemic on the U.S. economy. Other changes include an extension of the analysis of the market for Bitcoins and the correction of an error in that section in Chapter 16. Only minor changes have been made to other chapters. Chapter 4, which I regard as the most innovative chapter in the textbook, has not been changed since the publication of the first edition in June 2019, aside from the Following the Economic News section in that chapter. Some examples have been revised and updated, and some additional references have been added in footnotes throughout the textbook. Finally, a small number of typos have been corrected and some light editing has occurred. These changes were made from May 23-27, 2020 with some additional updates on July 23-27, 2020.