Principles of Economics- Mankiw (5th) 679

Principles of Economics- Mankiw (5th) 679 - . This figure...

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CHAPTER 31 AGGREGATE DEMAND AND AGGREGATE SUPPLY 703 Billions of 1992 Dollars Real GDP (a) Real GDP Billions of 1992 Dollars Investment spending (b) Investment Spending Percent of Labor Force Unemployment rate (c) Unemployment Rate 300 400 500 600 700 800 900 1,000 $1,100 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 $7,000 0 2 4 6 8 10 12 1965 1970 1975 1980 1985 1990 1995 1965 1970 1975 1980 1985 1990 1995 1965 1970 1975 1980 1985 1990 1995 Figure 31-1 AL OOK AT S HORT -R UN E CONOMIC F LUCTUATIONS
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Unformatted text preview: . This figure shows real GDP in panel (a), investment spending in panel (b), and unemployment in panel (c) for the U.S. economy using quarterly data since 1965. Recessions are shown as the shaded areas. Notice that real GDP and investment spending decline during recessions, while unemployment rises. S OURCE: U.S. Department of Commerce; U.S. Department of Labor....
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