Inflation: Its Causes and Cures Chapter 8 Inflation: Its Causes and Cures

Figure 8-1 Relationship of the Short-Run Aggregate Supply Curve (SAS) to the Short-Run Phillips Curve (SP) Copyright © 2003 by Pearson Education, Inc.

Figure 8-2 Effect on the Short-Run Phillips Curve of an Increase in the Expected Inflation Rate (pe) from Zero to 3 Percent Copyright © 2003 by Pearson Education, Inc.

Figure 8-3 The Adjustment Path of Inflation and Real GDP to an Acceleration of Nominal GDP Growth from Zero to 6 Percent When Expectations Fail to Adjust

Figure 8-4 Effect on Inflation and Real GDP of an Acceleration of Demand Growth from Zero to 6 Percent Copyright © 2003 by Pearson Education, Inc.

Figure 8-5 Initial Effect on Inflation and Real GDP of a Slowdown in Nominal GDP Growth from 10 Percent to 4 Percent Copyright © 2003 by Pearson Education, Inc.

Figure 8-6 Adjustment Path of Inflation and Real GDP to a Policy That Cuts Nominal GDP Growth from 10 Percent in 1980 to 4 Percent in 1981 and Thereafter Copyright © 2003 by Pearson Education, Inc.

Figure 8-7 The Inflation Rate and the Output Ratio, 1980–95 Copyright © 2003 by Pearson Education, Inc.

International Perspective Did Disinflation in Europe Differ from That in the United States? Source: OECD Economic Outlook, December 2001. Copyright © 2003 by Pearson Education, Inc.

Figure 8-8 Four-Quarter Growth Rates of the GDP Deflator and Nominal GDP and the Level of Nominal and Real Oil Prices, 1970–2001 Copyright © 2003 by Pearson Education, Inc.

Figure 8-9 The Unemployment Rate and the Inflation Rate, 1960–2002 Copyright © 2003 by Pearson Education, Inc.

Figure 8-10 The Effect on the Inflation Rate and the Output Ratio of an Adverse Supply Shock That Shifts the SP Curve Upward by 3 Percent

Figure 8-11 Effect of Adverse Supply Shocks in the 1970s and Beneficial Supply Shocks in the 1990s Copyright © 2003 by Pearson Education, Inc.

Figure 8-12 The Inflation Rate, the Actual Unemployment Rate, and the Natural Rate of Unemployment, 1980–2001 Copyright © 2003 by Pearson Education, Inc.

Figure 8-13 Responses of the Inflation Rate (p) and the Output Ratio (Y/YN) to Shifts in Nominal GDP Growth and in the SP Curve Copyright © 2003 by Pearson Education, Inc.

Figure 8-14 Copyright © 2003 by Pearson Education, Inc.

Figure 8-15 Copyright © 2003 by Pearson Education, Inc.