ECONOMICS 5 e Roger Arnold CHAPTER 9 Economic

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ECONOMICS, 5 e Roger Arnold CHAPTER 9 Economic Instability

ECONOMICS, 5 e Roger Arnold CHAPTER 9 Economic Instability

Exhibit 1 Keynes’s View of Say’s Law in a Money Economy Arnold Economics, 5

Exhibit 1 Keynes’s View of Say’s Law in a Money Economy Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 107

Exhibit 2 The Economy Gets “Stuck” in a Recessionary Gap Arnold Economics, 5 e

Exhibit 2 The Economy Gets “Stuck” in a Recessionary Gap Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 108

Exhibit 3 A Question of How Long It Takes for Wage Rates and Prices

Exhibit 3 A Question of How Long It Takes for Wage Rates and Prices to Fall Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 109

Exhibit 4 Consumption and Saving at Different Levels of Disposable Income (in billions) Arnold

Exhibit 4 Consumption and Saving at Different Levels of Disposable Income (in billions) Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 110

Exhibit 5 The Derivation of the Total Expenditures (TE) Curve Arnold Economics, 5 e

Exhibit 5 The Derivation of the Total Expenditures (TE) Curve Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 111

Exhibit 6 The Three States of the Economy Arnold Economics, 5 e / Ch.

Exhibit 6 The Three States of the Economy Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 112

Exhibit 7 The Economy: In Equilibrium, and in a Recessionary Gap, Too Arnold Economics,

Exhibit 7 The Economy: In Equilibrium, and in a Recessionary Gap, Too Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 113

Exhibit 8 A Change in Autonomous Investment Spending Relative to a Change in Real

Exhibit 8 A Change in Autonomous Investment Spending Relative to a Change in Real GDP Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 114

Exhibit 9 Unemployment Rates in Industry, 1925– 1928, and 1929– 1933; Percentage Decrease in

Exhibit 9 Unemployment Rates in Industry, 1925– 1928, and 1929– 1933; Percentage Decrease in Prices, 1929– 1932 SOURCE: Interwar Unemployment in International Perspective, Barry Eichengreen and T. J. Hatton (Dordrecht/Boston/London: Kluwer Academics Publishers). Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 115

Exhibit 10 Autonomous Investment Spending and the Multiplier Arnold Economics, 5 e / Ch.

Exhibit 10 Autonomous Investment Spending and the Multiplier Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 116

Exhibit 11 The Keynesian AS Curve Arnold Economics, 5 e / Ch. 9 Economic

Exhibit 11 The Keynesian AS Curve Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 117

Exhibit 12 Can the Private Sector Remove the Economy from a Recessionary Gap? Arnold

Exhibit 12 Can the Private Sector Remove the Economy from a Recessionary Gap? Arnold Economics, 5 e / Ch. 9 Economic Instability © 2001 South-Western College Publishing 118