Figure 12.1 The Fed Reaction Rule

Figure 12.2 Changing AD Equilibrium due to the Fed Reaction

Figure 12.3 The Aggregate Demand Equilibrium Curve

Figure 12.4 The Effect of Expansionary Fiscal Policy or Increased Confidence

Figure 12.5 The Effect of a Lower Target Inflation Rate

Figure 12.6 The Aggregate Supply Response (ASR) Curve

Figure 12.7 An Increase in Inflationary Expectations

Figure 12.8 A Beneficial Supply Shock

Figure 12.9 An Economy in Recession

Figure Unemployment and Inflation in the United States,

Figure Expansionary Fiscal Policy When the Economy Starts in a Recession

Figure Unemployment and Inflation in the United States,

Figure Expansionary Fiscal Policy When the Economy is at Full Employment

Figure Unemployment and Inflation in the United States,

Figure Contractionary Fiscal Policy and Rising Inflationary Expectations

Figure Unemployment and Inflation in the United States,

Figure The Immediate Effect of the Oil Price Shock

12.18 Medium-Run Adjustment to the Oil Price Shock

Figure Unemployment and Inflation in the United States

Figure The Immediate Effect of a Lowered Inflation Target

Figure The Medium-Run Effect of a Lowered Inflation Target

Figure Unemployment and Inflation in the United States,

Figure Unemployment and Inflation in the United States,

Figure The Effects of Technological Innovation

Figure The Classical Aggregate Supply Curve

(a)(b) Figure Business Cycles

Figure Expansionary Monetary Policy with Rational Expectations