Copyright © 2002 Pearson Education, Inc. Slide 1
Copyright © 2002 Pearson Education, Inc. Slide 2 Keynesian Business Cycle Theory: The Sticky Wage Model Chapter 10
Copyright © 2002 Pearson Education, Inc. Slide 3 Figure 10-1 The Labor Market in the Keynesian Sticky Wage Model
Copyright © 2002 Pearson Education, Inc. Slide 4 Figure 10-2 The Labor Market in the Keynesian Sticky Wage Model When There Is Excess Demand
Copyright © 2002 Pearson Education, Inc. Slide 5 Figure 10-3 Construction of the Aggregate Supply Curve
Copyright © 2002 Pearson Education, Inc. Slide 6 Figure 10-4 The Effect of an Increase in W or a Decrease in z
Copyright © 2002 Pearson Education, Inc. Slide 7 Figure 10-5 The IS Curve
Copyright © 2002 Pearson Education, Inc. Slide 8 Figure 10-6 Money Demand, Money Supply, and the LM Curve
Copyright © 2002 Pearson Education, Inc. Slide 9 Figure 10-7 Determination of r and Y Given P
Copyright © 2002 Pearson Education, Inc. Slide 10 Figure 10-8 The Effect of an Increase in the Money Supply on the LM Curve
Copyright © 2002 Pearson Education, Inc. Slide 11 Figure 10-9 The Effects of an Increase in the Price Level on the LM Curve
Copyright © 2002 Pearson Education, Inc. Slide 12 Figure A Positive Shift in Money Demand Shifts the LM Curve to the Left
Copyright © 2002 Pearson Education, Inc. Slide 13 Figure The Aggregate Demand Curve
Copyright © 2002 Pearson Education, Inc. Slide 14 Figure A Shift to the Right in the IS Curve Shifts the AD Curve to the Right
Copyright © 2002 Pearson Education, Inc. Slide 15 Figure A Shift to the Right in the LM Curve Shifts the AD Curve to the Right
Copyright © 2002 Pearson Education, Inc. Slide 16 Figure The Keynesian Sticky Wage Model
Copyright © 2002 Pearson Education, Inc. Slide 17 Figure An Increase in the Money Supply in the Sticky Wage Model
Copyright © 2002 Pearson Education, Inc. Slide 18 Table 10-1
Copyright © 2002 Pearson Education, Inc. Slide 19 Figure An Increase in the Demand for Investment Goods in the Sticky Wage Model
Copyright © 2002 Pearson Education, Inc. Slide 20 Table 10-2
Copyright © 2002 Pearson Education, Inc. Slide 21 Figure Money Supply and GDP
Copyright © 2002 Pearson Education, Inc. Slide 22 Figure Real and Nominal Interest Rates
Copyright © 2002 Pearson Education, Inc. Slide 23 Figure Long-Run Adjustment of the Nominal Wage
Copyright © 2002 Pearson Education, Inc. Slide 24 Figure Stabilization Policy in the Sticky Wage ModelMonetary Policy
Copyright © 2002 Pearson Education, Inc. Slide 25 Figure Stabilization Policy in the Sticky Wage ModelFiscal Policy
Copyright © 2002 Pearson Education, Inc. Slide 26 Figure The Equilibrium Effects of a Positive Money Demand Shift