Includes bibliographical references and index.

1. The process of Economic Analysis -- 2. Definition of Concepts and Measurement of Output -- 3. National Income -- 4. Output and Capacity -- 5. A Sketch of American Economic Experience -- 6. Analytical and Expository Techniques -- 7. The Determination of Equilibrium Output -- 8. The Consumption Function and Multiplier -- 9. Theories of the Consumption Function -- 10. The Theory of Investment -- 11. The Determinants of Investment -- 12. Liquidity Preference and the Theory of Interest -- 13. The Theory of Income Determination -- 14. The Public Sector and the International Sector -- 15. Prices, Wages, and Output -- 16. Keynesian theory and It's Predecessors -- 17. The monetarist Challenge -- 18. Economic Growth -- 19. Fluctuations in Economic Activity -- 20. Inflation -- 21. Economic Analysis and Economic Policy -- 22. Stabilization Policy: The Mean -- 23. Stabilization Policy: Problems and Difficulties.

The Approach of this book emphasizes that economics is a social science which aims to develop testable predictions in terms of measurable concepts.
Though it contains a good deal of theory, we have tried consistently to develop the view that theory is meant to be tested. To this end, each chapter is supplemented by questions and exercises, many of which require the use of data from published sources to make simple tests of economic predictions or hypotheses. This means that the student is asked not only to read through the book but also to work through it. It also gives the student the opportunity to learn economics in the best of all possible ways_ by actually working out problems. By this approach, we hope not only to encourage an appropriate methodological outlook but also to discourage students from thinking, as many do, that economic theory is empty and arid and applied economics mainly unstructured description only loosely related to theory.