ECONOMICS SECOND EDITION ROBERT E HALL STANFORD UNIVERSITY
ECONOMICS SECOND EDITION ROBERT E. HALL STANFORD UNIVERSITY MARC LIEBERMAN NEW YORK UNIVERSITY CHAPTER 26 AGGREGATE DEMAND AGGREGATE SUPPLY
Figure 1 The Two-Way Relationship Between Output and the Price Level ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western
Figure 2 Interest Rate Deriving the 9% Aggregate 6% Demand Curve (a) M (b) Aggregate Expenditure ($ Trillions) s AE r = 6% E H AE r = 9% E H M d 2 M d 1 500 Money ($ Billions) 6 10 (c) Real GDP ($ Trillions) Price Level H 140 E 100 AD 6 ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western 10 Real GDP ($ Trillions)
Figure 3 A Spending Shock Shifts the AD Curve (a) Real Aggregate Expenditure ($ Trillions) AE 2 AE 1 H E 10 13. 5 Real GDP ($ Trillions) (b) Price Level 100 H E AD 1 AD 2 ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western 10 13. 5 Real GDP ($ Trillions)
Figure 4 Effects of Key Changes on
Figure 5 The Aggregate Supply Curve ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western
Figure 6 Shifts of the Aggregate Supply Curve Price Level AS 2 140 L 100 A 10 ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western AS 1 Real GDP ($ Trillions)
Figure 7 Effects of Key Changes on
Figure 8 Short-Run Macroeconomic Equilibrium ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western
Figure 9 The Effect of a Demand Shock Price Level AS 130 H 100 J E AD 1 10 12 13. 5 ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western AD 2 Real GDP ($ Trillions)
Figure 10 The Long-Run Adjustment Process Price Level Long-Run AS Curve AS 2 AS 1 P 4 K J P 3 P 2 P 1 H E AD 2 AD 1 YFEY 3 Y 2 ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western Real GDP
Figure 11 Long-Run Adjustment After a Negative Demand Shock Price Level Long-Run AS Curve AS 1 AS 2 P 1 P 2 E N P 3 M AD 1 AD 2 YFE ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western Real GDP
Figure 12 The Effect of a Supply Shock Price Level Long-Run AS Curve AS 2 AS 1 P 2 P 1 R E AD Y 2 YFE ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western Real GDP
Figure 12 The Effect of a Supply Shock Price Level Long-Run AS Curve AS 1 E P 1 AD YFE ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western Real GDP
Figure 13 The Price of Oil, Real GDP, and the Price Level, 1990– 92 ECONOMICS 2 e / HALL & LIEBERMAN CHAPTER 26 / AGGREGATE DEMAND AGGREGATE SUPPLY © 2001 South-Western
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