Chapter 5
A Closed-Economy Model One-Period Macroeconomic Model


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Figure 5.1  A Model Takes Exogenous Variables and Determines Endogenous Variables

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Figure 5.2  The Production Function and the Production Possibilities Frontier

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Figure 5.3  Competitive Equilibrium

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Figure 5.4  Pareto Optimality

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Figure 5.5  Using the Second Welfare Theorem to Determine a Competitive Equilibrium

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Figure 5.6  Equilibrium Effects of an Increase in Government Spending

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Figure 5.7  GDP, Consumption, and Government Expenditures

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Figure 5.8  Increase in Total Factor Productivity

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Figure 5.9  Competitive Equilibrium Effects of an Increase in Total Factor Productivity

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Figure 5.10  Income and Substitution Effects of an Increase in Total Factor Productivity

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Figure 5.11  Deviations from Trend in Real GDP and the Solow Residual

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Figure 5.12  The Relative Price
of Energy