chapter 12 unemployment and inflation. copyright © 2005 pearson addison-wesley. all rights...

Chapter 12

Unemployment and Inflation

Copyright © 2005 Pearson Addison-Wesley. All rights reserved. 12-2

Figure 12.1 The Phillips curve and the U.S. economy during the 1960s


Figure 12.2 Inflation and unemployment in the United States, 1970–2002


Figure 12.3 Ongoing inflation in the extended classical model


Figure 12.4 Unanticipated inflation in the extended classical model


Figure 12.5 The shifting Phillips curve: an increase in expected inflation


Figure 12.6 The shifting Phillips curve: an increase in the natural unemployment rate


Figure 12.7 The expectations-augmented Phillips curve in the United States, 1970–2002


Figure 12.8 The long-run Phillips curve


Figure 12.9 Actual and natural unemployment rates in the United States


Figure 12.10 Unemployment rates by demographic group


Figure 12.10 Unemployment rates by demographic group (cont’d)


Figure 12.11 Unemployment rates in Western Europe


Box 12.4 The Sacrifice Ratio

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