2. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 CHAPTER 1 the economy at full employment: the classical model

3. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.1 The Short-Run Production Function and the Demand for Labour

4. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.2 Increase in Productivity

5. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.3 The Supply of Labour

6. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.4 Full Employment and Potential GDP

7. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.5 Investment, Saving, and the Real Interest Rate

8. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.6 Money Balances

9. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.7 The Interest Rate and the Propensity to Hold Money

10. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.8 Money and the Price Level

11. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.9 Canadian Productivity Growth

12. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.10 Canadian Saving, Investment, and Real Interest Rate

13. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 3.11 Canadian Money, Price Level, and Inflation

14. Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Table 3.1 The Economy in Five Full-Employment Years