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The New-Keynesian Theory of Aggregate Supply

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Presentation on theme: "The New-Keynesian Theory of Aggregate Supply"— Presentation transcript:

1 The New-Keynesian Theory of Aggregate Supply
Chapter 8 The New-Keynesian Theory of Aggregate Supply

2 The Classical and New-Keynesian Theories of Aggregate Supply Compared
Figure 8.1A ©2002 South-Western College Publishing

3 The Classical and New-Keynesian Theories of Aggregate Supply Compared
Figure 8.1B ©2002 South-Western College Publishing

4 How Changes in the Price Level Affect Employment
Figure 8.2A ©2002 South-Western College Publishing

5 How Changes in the Price Level Affect Employment
Figure 8.2B ©2002 South-Western College Publishing

6 The New-Keynesian Theory
of Aggregate Supply Figure 8.3 ©2002 South-Western College Publishing

7 Getting from the Short Run to the Long Run
Figure 8.4 ©2002 South-Western College Publishing

8 The Non-Neutrality of Money in the Keynesian Model
Figure 8.5 ©2002 South-Western College Publishing

9 FOCUS ON THE FACTS Wages and Prices in the United States
During the Great Depression Box 8.3A ©2002 South-Western College Publishing

10 FOCUS ON THE FACTS Wages and Prices in the United States
During the Great Depression Box 8.3B ©2002 South-Western College Publishing

11 END


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