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Chapter 33
The Warring Schools
of Macroeconomics
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T-252
Figure 33-1
According to Say’s Law,Supply Creates Its
Own Demand as Prices Move to Balance
Demand with Aggregate Supply
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Aggregate Demand Helps Determine
Output in the Keynesian Approach
T-253
Figure 33-2
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Velocity and Its Components,
1929-1995
T-254
Figure 33-3
Source,V constructed by the authors from the data from the Federal Reserve Board
and the U.S,Department of Commerce,
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Comparison of Monetarist
and Keynesian Views
T-255
Figure 33-4
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Rate of Changes
of Income Velocity of M1
T-256
Figure 33-5
Source,Velocity defined as the ratio of GDP to M1; money supply from the Federal Reserve Board
and GDP from the Commerce Department,
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The New Classical Phillips Curve
T-256
Figure 33-6
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Comparison of Multipliers in Forward-
Looking and Adaptive Models
T-258
Figure 33-7
Source,Ralph C,Bryant,Gerald Holtham,and Peter Hooper,“Consensus and Diversity in the Model Simulations,”
in Ralph C,Bryant et al.,eds.,Empirical Macroeconomics for Interdependent Economies
(Brookings Institution,Washington,D.C.,1988),Fig,3-33,