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RUDIGER DORNBUSCHSTANLEY FISCHERRICHARD STARTZ

macroeconomics

NINTH EDITION

Chapter Eleven

Monetary and Fiscal Policy

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-3

The 2001 Recession

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-4

IS-LM Equilibrium

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-5

Monetary Policy

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-6

Japanese Interest Rates

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-7

Pegging the Interest Rate

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-8

Effects of an Increase in Government Spending

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-9

Full Crowding Out

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-10

Monetary Accommodation of Fiscal Expansion

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-11

An Investment Subsidy Shifts the Investment Schedule

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-12

Expansionary Policies and the Composition of Output

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-13

Inflation, Unemployment, and the Interest Rate

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

11-14

Real GDP Growth and President Bush’s Tax Relief

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