Chapter 20

U.S. Real Gross Domestic Product, 1929-1999

Actual and Potential GDP

Unemployment Rises in Recessions, Falls During Expansions

Consumer Price Inflation,
1929-1999

Aggregate Supply and Demand Determine the Major Macroeconomic Variables

Aggregate Price and Output Are Determined by the Interaction of Aggregate Supply and Demand

Wartime Boom Is Propelled By Increasing Aggregate Demand

Effects of Supply Shocks

Growth in Potential Output Determines Long-Run Economic Performance