Slide 1 Slide 2 Potential GDP and the Natural Unemployment Rate CHAPTER 8 Slide 3 C H A P T E R C H E C K L I S T When you have completed your study of this chapter, you…

Slide 1THE ECONOMY AT FULL EMPLOYMENT: THE CLASSICAL MODEL 24 CHAPTER Slide 2 Objectives After studying this chapter, you will able to Describe the relationship between the…

Slide 1Chapter 8 A roadmap ahead: So far we have studied how aggregate economic performance is defined and measured. In the next few chapters we will study the forces that…

Slide 1 Prepared by: Jamal Husein C H A P T E R 9 © 2005 Prentice Hall Business PublishingSurvey of Economics, 2/eO’Sullivan & Sheffrin The Labor Market Slide 2 2…

Slide 1 The Labor Market and Potential GDP –To understand how potential GDP is determined, we study: – The demand for labor – The supply of labor – Labor market equilibrium…

The economy at Full Employment Lecture notes 4 Instructor: MELTEM INCE The Classical Model Economists have made progress in understanding how the economy works by dividing…

Chapter 10 The primal linear program solution answers the tactical question when it tells us how much to produce. But the dual can have far greater impact because it addresses…

CH. 8: THE ECONOMY AT FULL EMPLOYMENT: THE CLASSICAL MODEL Describe the relationship between the quantity of labor employed and real GDP Explain what determines the demand…