1. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. Chapter 3 Spending, Income, and Interest Rates

2. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-2 Figure 3-1 Real GDP Growth in the United States, 1950–2004

3. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-3 Figure 3-2 A Simple Hypothesis Regarding Consumption Behavior

4. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-4 Figure 3-3 Consumption, Saving, and Disposable Income, 1929–2004

5. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-5 Figure 3-4 How Equilibrium Income Is Determined

6. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-6 Table 3-1 Comparison of the Economy’s “Always True” and Equilibrium Situations

7. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-7 Figure 3-5 The Change in Equilibrium Income Caused by a $500 Billion Increase in Autonomous Planned Spending

8. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-8 Figure 3-6 The Payoff to Investment for an Airline and the Economy

9. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-9 Figure 3-7 Effect on Autonomous Planned Spending of an Increase in Business and Consumer Confidence

10. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-10 Figure 3-8 Relation of the Various Components of Autonomous Planned Spending to the Interest Rate

11. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3-11 Figure 3-9 Relation of the IS Curve to the Demand for Autonomous Spending