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Chapter 2 A Tour of the Book
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adjust assumption average billion bonds budget deficit central bank Chapter checkable deposits consumers consumption countries crease decrease deficit reduction demand for money depends devaluation disposable income dollar domestic economists economy effects equation equilibrium example expected future expected inflation exports Figure financial markets firms fixed exchange rates foreign GDP deflator German given government spending growth rate higher implies increase in output inflation rate investment IS-LM model level of output LM curve look lower macroeconomic macroeconomists ment monetary policy money growth money supply movements natural level natural rate nominal interest rate nominal money one-year output growth output per capita payments percent Phillips curve present value price level production profit quarter ratio real exchange rate real GDP real interest rate real money real wage recession saving rate shift stock prices Suppose taxes technological progress tion trade balance trade deficit unemployed unemployment rate United variables