ECSENOMICS Chapter 20 Overview of macroeconomics McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 20 Overview of Macroeconomics
ECSENOMICS U.S. Real Gross Domestic Product 1929-1999 1-144 Figure 20-1 0.000 8.000 6.000 4.000 4=955三-5豆 2.000 llllll」 1930 19401950 1960 1970198 1990 20MN Year McGraw-Hilllrwin Source: U.S. Department of Commerce. Shaded regions are major economic downturns
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. U.S. Real Gross Domestic Product, 1929-1999 T-144 Figure 20-1 Source: U.S. Department of Commerce. Shaded regions are major economic downturns
ECSENOMICS Actual and Potential GDP T145 Figure 20-2 10.000 E 28.000 5.000 4.000 3,00 Actual GDP 2,000 Potential GDP 司1.00 800 19301940195019601970198019902000 Year McGraw-Hilllrwin Source: U.S. Department of Commerce and authors'estimate
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Actual and Potential GDP T-145 Figure 20-2 Source: U.S. Department of Commerce and authors’ estimate
ECENOMIC s Unemployment Rises in Recessions Falls During Expansions 1-146 Figure 20-3 Llulwlululluluy 1930 Year McGraw-Hilllrwin Source: U.S. Department of Labor
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Unemployment Rises in Recessions, Falls During Expansions T-146 Figure 20-3 Source: U.S. Department of Labor
ECSENOMICS Consumer Price Inflation 1929-1999 1-147 Figure 20-4 1930193519401945195019551960196519701975198019899901995 Year McGraw-Hilllrwin Source: U.S. Department of Labor
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Consumer Price Inflation, 1929-1999 T-147 Figure 20-4 Source: U.S. Department of Labor
ECSENOMICS Aggregate Supply and Demand Determine the major macroeconomic Variables 1-148 Figure 20-5 real GDP palcy Aggregate upply and demand Price level Aggregate labor ichnology McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Aggregate Supply and Demand Determine the Major Macroeconomic Variables T-148 Figure 20-5
ECSENOMICS Aggregate Price and Output Are Determined by t the Interaction of Aggregate Supply and Demand T-149 Figure 20-6 AS 250 B 200 司150 AD O 1,0002,0003,0004,005,000 Real GDP(billions) McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Aggregate Price and Output Are Determined by the Interaction of Aggregate Supply and Demand T-149 Figure 20-6
ECSENOMICS Wartime Boom Is Propelled By S Increasing Aggregate Demand 1-150 Figure 20-7 AS Potential output E P AD QQ Real GDP McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Wartime Boom Is Propelled By Increasing Aggregate Demand T-150 Figure 20-7
ECSENOMICS Effects of Supply Shocks 1-151 Figure 20-8 otential output AS AD Real gDP McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Effects of Supply Shocks T-151 Figure 20-8
ECSENOMICS Growth in Potential Output Determines Long-Run Economic Performance 1-152 Figure 20-9 AD 1999 AS 1900 00 AD Q1900 Q 1999 Real output McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Growth in Potential Output Determines Long-Run Economic Performance T-152 Figure 20-9