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Chapter 32
Ensuring Price Stability
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T-240
Figure 32-1
Inflation Is a Fundamental
Constraint on Economic Policy
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English Price Level and Real Wage,
1270-1999 (1270 = 1)
T-241
Figure 32-2
Source,E.H,Phelps Brown and S.V,Hopkins,Econom ca,1956,upda ed by authors,
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U.S,Prices since the Civil War
T-242
Figure 32-3
Source,U.S,Department f L bor,Bureau of Labor Statistics,
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Inflation Has Remained Low
and Stable in the 1990s
T-243
Figure 32-4
Source,U.S,Department of Labor Statistics www.bls.gov,
This graph shows the consumer price index,
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Money and Hyperinflation in
Germany,1922-1924
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Figure 32-5
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Demand-Pull Inflation Occurs When Too
Much Spending Chases Too Few Goods
T-245
Figure 32-6
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An Upward Spiral of Prices and Wages
Occurs When Aggregate Supply
and Demand Shift Up Together
T-246
Figure 32-7
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The Short-Run Phillips Curve Depicts
the Trade-off between Inflation
and Unemployment
T-247
Figure 32-8
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The Phillips Curve
or the Phillips Curl?
T-248
Figure 32-9
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How Shocks Move
the Phillips Curve
T-249
Figure 32-10
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Actual Unemployment Rate
and NAIRU,1955-1999
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Figure 32-11
Source,Actual unemployment rate from U.S,Department of Labor,Employment and Earnings;
NAIRU from the Congressional Budget Office and research of private scholars,
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Actual and Predicted Inflation,
1955-1999
T-251
Figure 32-12
Source,Actual CPI and unemployment rate from Bureau of Labor Statistics,
Predicted inflation assumes a NAIRU of 5.5 percent,