1. Chapter 8 Business Cycles

2. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-2 Figure 8.1 A business cycle

3. 8-3 Table 8.1 NBER Business Cycle Turning Points and Durations of Post–1854 Business Cycles

4. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-4 Figure 8.2 Index of industrial production, January 2000–April 2003

5. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-5 Figure 8.3 Total nonfarm employment, January 2000–April 2003

6. 8-6

7. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-7 Figure 8.4 Cyclical behavior of the index of industrial production

8. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-8 Figure 8.5 Cyclical behavior of consumption and investment

9. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-9 Figure 8.6 Cyclical behavior of civilian employment

10. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-10 Figure 8.7 Cyclical behavior of the unemployment rate

11. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-11 Figure 8.8 Cyclical behavior of average labor productivity and the real wage

12. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-12 Figure 8.9 Cyclical behavior of nominal money growth and inflation

13. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-13 Figure 8.10 Cyclical behavior of the nominal interest rate

14. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-14 Figure 8.11 Industrial production indexes in six major countries

15. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-15 Figure 8.12 The aggregate demand– aggregate supply model

16. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-16 Figure 8.13 An adverse aggregate demand shock

17. Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 8-17 Figure 8.14 An adverse aggregate supply shock