1. Chapter 11 Market-Clearing Models of the Business Cycle

2. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-2 Figure 11.1 The Effects of an Unanticipated Increase in the Money Supply in the Money Surprise Model

3. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-3 Table 11.1 Data Versus Predictions of the Money Surprise Model with Monetary Shocks

4. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-4 Figure 11.2 Solow Residuals and GDP

5. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-5 Figure 11.3 Effects of a Persistent Increase in Total Factor Productivity in the Real Business Cycle Model

6. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-6 Figure 11.4 Average Labor Productivity with Total Factor Productivity Shocks

7. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-7 Table 11.2 Data Versus Predictions of the Real Business Cycle Model with Productivity Shocks

8. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-8 Figure 11.5 Procyclical Money Supply in the Real Business Cycle Model with Endogenous Money

9. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-9 Figure 11.6 Percentage Deviations From Trend in Money Supply and GDP

10. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-10 Figure 11.7 Real and Nominal Interest Rates

11. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-11 Figure 11.8 Relative Price of Energy

12. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-12 Figure 11.9 A Production Function with Increasing Returns to Scale

13. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-13 Figure 11.10 Aggregate Labor Demand with Sufficient Increasing Returns to Scale

14. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-14 Figure 11.11 The Labor Market in the Coordination Failure Model

15. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-15 Figure 11.12 The Output Supply Curve in the Coordination Failure Model

16. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-16 Figure 11.13 Multiple Equilibria in the Coordination Failure Model

17. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-17 Table 11.3 Data Versus Predictions of the Coordination Failure Model

18. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-18 Figure 11.14 Average Labor Productivity in the Keynesian Coordination Failure Model

19. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-19 Figure 11.15 Procyclical Money Supply in the Coordination Failure Model

20. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 11-20 Figure 11.16 Stabilizing Fiscal Policy in the Coordination Failure Model