Slide 1
Exhibit 18-1 Three Stages of Production
Exhibit 18-2 Generalized Relationship between Inputs and Output
Exhibit 18-3 Postponing Diminishing Returns
Exhibit 18-4 The Power of Compounding: Effects of Compounding $1 for 515 Years
Exhibit 18-5 How Governments Can Promote Economic Growth
Exhibit 18-6 How Governments Can Impede Economic Growth
Exhibit 18-7 GDP relationship 1: Nominal GDP ≡ P × Q
Exhibit 18-8 GDP Relationship 2: Nominal GDP ≡ M2 × V2
Exhibit 18-9 V2 Is a Derived Value
Exhibit 18-10 Equation of Exchange
Exhibit 18-11 GDP Components in Percentage Terms: An Approximation
Exhibit 18-12 Equation of Exchange in Percentage Terms
Exhibit 18-13 EOE: Causes of Inflation
Exhibit 18-14 Causes of Long-Term Changes In M2
Exhibit 18-15 Factors That Affect the Portfolio Demand to Hold M2 and the M2 Velocity
Exhibit 18-16 M2 Velocity in the United States, 1959–2006
Exhibit 18-17 Changes in U.S. M2 Velocity and Inflation Rate, 1959–2006
Exhibit 18-18 Discretionary Change in M2 to Achieve 0% Long-Term Inflation
Exhibit 18-19 Monetarism: Inflation Is a Monetary Phenomenon
Exhibit 18-20 Short-Run Phillips Curve Relationship
Exhibit 18-21 U.S. Phillips Curve Relationship, 1959–1968
Exhibit 18-22 U.S. Inflation and Unemployment, 1959–2006
Exhibit M18-1 Labor Market
Exhibit 18-23 The Natural-Rate Hypothesis
Exhibit 18-24 Long-Term and Short-Term Phillips Curves, 1959–2006
Exhibit 18-25 Changes in the Natural Rate of Unemployment
Exhibit A18-1 Changes in the Natural Rate of Unemployment
Exhibit A18-2 Monetary Rule: Target Inflation Rate=0%
Exhibit A18-3 Can Falling Real GDP Cause Long-Term (30%) Inflation?
Exhibit A18-4 Can Rising Velocity Cause Long-Term (30%) Inflation?
Exhibit A18-5 Can Rising Velocity and Falling Real GDP Cause Long-Term (30%) Inflation?
Exhibit A18-6 Can Rising Money Supply Cause Long-Term (30%) Inflation?
Exhibit A18-7 Inflation in Argentina and Turkey Caused by Excessive Money Growth*