{"id":6676,"date":"2017-07-13T15:48:45","date_gmt":"2017-07-13T15:48:45","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/?post_type=chapter&#038;p=6676"},"modified":"2017-08-07T22:19:29","modified_gmt":"2017-08-07T22:19:29","slug":"instability-in-the-economy-the-keynesian-perspective","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/chapter\/instability-in-the-economy-the-keynesian-perspective\/","title":{"raw":"The Multiplier and Instability in the Economy - The Keynesian Perspective","rendered":"The Multiplier and Instability in the Economy &#8211; The Keynesian Perspective"},"content":{"raw":"<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/12151009\/16637218912_382efe7ce9_z.png\"><img class=\"wp-image-6692 size-medium alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/12151009\/16637218912_382efe7ce9_z-225x300.png\" alt=\"\" width=\"225\" height=\"300\" \/><\/a>John Maynard Keynes, a British economist, is often viewed as the father of modern macroeconomics. \u00a0In 1936 he published the '<em>General Theory of Employment, Interest and Money<\/em>' challenging the then prevailing Classical view of the macroeconomy and attempting to explain the instability in the economy exposed by the great depression of the 1930's, the cycles of recessions and expansions, and offering policy prescriptions to minimize their harmful effects.\r\n<p id=\"ch25mod03_p02\">The Keynesian theory contends that the macroeconomy is not self correcting as previously thought by Classical economists but inherently unstable. \u00a0Full employment is not a guarantee, any deviation from it tend to be amplified and inflexibility in markets can prevent the economy from returning to full employment.<\/p>\r\nKeynesian key arguments:\r\n<ul>\r\n \t<li>The Classical theory that 'Supply created its own demand' (Say's law) is not supported by events such as the Great Depression and aggregate demand is not always automatically high enough to provide firms with an incentive to hire enough workers to reach full employment.<\/li>\r\n \t<li>The macroeconomy may adjust only slowly to shifts in aggregate demand because of\u00a0sticky wages and prices, which are wages and prices that do not respond to decreases or increases in demand.<\/li>\r\n \t<li>Any change in spending leads to a greater change in output, which means that the fluctuations of the business cycle are wide by nature.<\/li>\r\n<\/ul>\r\n<h2>Supply does not necessarily create its own demand<\/h2>\r\n<p id=\"ch25mod03_p03\">The first building block of the Keynesian diagnosis is that recessions occur when the level of household and business sector demand for goods and services is less than what is produced when labor is fully employed. In other words, the intersection of aggregate supply and aggregate demand occurs at a level of output less than the level of GDP consistent with full employment. Suppose the stock market crashes, as occurred in 1929. Or, suppose the housing market collapses, as occurred in 2008. In either case, household wealth will decline, and consumption expenditure will follow. Suppose businesses see that consumer spending is falling. That will reduce expectations of the profitability of investment, so businesses will decrease investment expenditure.<\/p>\r\n<p id=\"ch25mod03_p04\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/12155558\/migrant-mother.png\"><img class=\"wp-image-6705 size-medium alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/12155558\/migrant-mother-244x300.png\" alt=\"\" width=\"244\" height=\"300\" \/><\/a>This seemed to be the case during the Great Depression, since the physical capacity of the economy to supply goods did not alter much. No flood or earthquake or other natural disaster ruined factories in 1929 or 1930. No outbreak of disease decimated the ranks of workers. No key input price, like the price of oil, soared on world markets. The U.S. economy in 1933 had just about the same factories, workers, and state of technology as it had had four years earlier in 1929\u2014and yet the economy had shrunk dramatically. This also seems to be what happened in 2008.<\/p>\r\n<p id=\"ch25mod03_p05\">As Keynes recognized, the events of the Depression contradicted Say\u2019s law that \u201csupply creates its own demand.\u201d Although production capacity existed, the markets were not able to sell their products. As a result, real GDP was less than potential or full employment GDP.<\/p>\r\n\r\n<section id=\"ch25mod03_01\">\r\n<h1>The Expenditure Multiplier<\/h1>\r\n<p id=\"ch25mod02_p016\">A key reason behind the instability in the economy is the expenditure multiplier, the idea that not only does spending affect the equilibrium level of GDP, but that spending is powerful. More precisely, it means that a change in spending causes a more than proportionate change in GDP.<\/p>\r\n\r\n<div id=\"ch25mod02_eq1\" class=\"equation\">\r\n<div class=\"MathJax_Display\"><\/div>\r\n<div style=\"text-align: center\"><strong>Initial Change in Spending x Expenditure Multiplier = Final Change in GDP<\/strong><\/div>\r\n<\/div>\r\n<\/section>\r\n<div>\r\n\r\nThe reason for the expenditure multiplier is that one person\u2019s spending <a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045543\/multiplier.png\"><img class=\"wp-image-6733 alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045543\/multiplier.png\" alt=\"\" width=\"400\" height=\"304\" \/><\/a>becomes another person\u2019s income, which leads to additional spending and additional income, and so forth, so that the cumulative impact on GDP is larger than the initial increase in spending. \u00a0The size of the multiplier effect depends on the spending patterns in the economy, more specifically how much our spending is likely to change as income change or our Marginal Propensity to Consume. \u00a0The greater the MPC, the greater the multiplier effect.\r\n<p style=\"text-align: center\"><strong>Expenditure Multiplier = M = 1\/ (1- Marginal Propensity to Consume)<\/strong><\/p>\r\n\r\n<\/div>\r\n<section id=\"ch25mod03_01\">\r\n<table class=\"alignleft\" style=\"width: 900px\">\r\n<tbody>\r\n<tr>\r\n<td>&nbsp;\r\n\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045546\/multiplier-ex.png\"><img class=\"alignnone wp-image-6734\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045546\/multiplier-ex.png\" alt=\"\" width=\"400\" height=\"301\" \/><\/a><\/td>\r\n<td>&nbsp;\r\n\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14050749\/multiplier-ex-number.png\"><img class=\"aligncenter wp-image-6736\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14050749\/multiplier-ex-number.png\" alt=\"\" width=\"400\" height=\"311\" \/><\/a><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\nThe multiplier occurs with\u00a0any autonomous increase in spending. <a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14055220\/multiplier-graph.png\"><img class=\"wp-image-6741 alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14055220\/multiplier-graph.png\" alt=\"\" width=\"400\" height=\"304\" \/><\/a>Additionally, the multiplier operates in a negative as well as a positive direction. Thus, when investment spending collapsed during the Great Depression, it caused a much larger decrease in real GDP. The size of the multiplier is critical and was a key element in recent discussions of the effectiveness of the Obama administration\u2019s fiscal stimulus package, officially titled the\u00a0<span class=\"no-emphasis\">American Recovery and Reinvestment Act of 2009<\/span>.\r\n\r\n<\/section><section id=\"ch25mod03_01\">\r\n<h2>Wage and Price Stickiness<\/h2>\r\n<p id=\"ch25mod03_p07\">Keynes also pointed out that although AD fluctuated, prices and wages did not immediately respond as economists often expected. Instead, prices and wages are \u201csticky,\u201d making it difficult to restore the economy to full employment and potential GDP. Keynes emphasized one particular reason why wages were sticky: the\u00a0coordination argument. This argument points out that, even if most people would be willing\u2014at least hypothetically\u2014to see a decline in their own wages in bad economic times as long as everyone else also experienced such a decline, a market-oriented economy has no obvious way to implement a plan of coordinated wage reductions.\u00a0Unemployment\u00a0proposed a number of reasons why wages might be sticky downward, most of which center on the argument that businesses avoid wage cuts because they may in one way or another depress morale and hurt the productivity of the existing workers.<\/p>\r\n<p id=\"ch25mod02_p08\">Some modern economists have argued in a Keynesian spirit that, along with wages, other <span style=\"text-decoration: underline\">prices may be sticky, too<\/span>. Many firms do not change their prices every day or even every month. When a firm considers changing prices, it must consider two sets of costs. First, changing prices uses company resources: managers must analyze the competition and market demand and decide what the new prices will be, sales materials must be updated, billing records will change, and product labels and price labels must be redone. Second, frequent price changes may leave customers confused or angry\u2014especially if they find out that a product now costs more than expected. These costs of changing prices are called\u00a0<span style=\"text-decoration: underline\">menu costs<\/span>\u2014like the costs of printing up a new set of menus with different prices in a restaurant. Prices do respond to forces of supply and demand, but from a macroeconomic perspective, the process of changing all prices throughout the economy takes time.<\/p>\r\nBecause wages and prices tend to be sticky, especially downward, and adjust slowly and not completely, recessions can be deep and long lasting.\r\n<div id=\"ch25mod02_clear01\" class=\"note economics clearup ui-has-child-title\"><header>\r\n<div>\r\n<div class=\"textbox shaded\"><header>\r\n<div class=\"title\">WHY IS THE PACE OF WAGE ADJUSTMENTS SLOW?<\/div>\r\n<\/header><section>\r\n<p id=\"ch25mod02_p11\">The recovery after the Great Recession in the United States has been slow, with wages stagnant, if not declining. In fact, many low-wage workers at McDonalds, Dominos, and Walmart have threatened to strike for higher wages. Their plight is part of a larger trend in job growth and pay in the post\u2013recession recovery.<\/p>\r\n\r\n<figure id=\"CNX_Econ_C25_028\" class=\"ui-has-child-figcaption\">\r\n<div class=\"title\">Jobs Lost\/Gained in the Recession\/Recovery<\/div>\r\n<span id=\"CNX_Econ_C25_028m\"><img class=\"aligncenter\" src=\"https:\/\/cnx.org\/resources\/6a18a35f24594ed14275e6a4de792291ff47b544\/CNX_Econ_C25_028.jpg\" alt=\"The chart on the left shows that the majority of jobs lost during the recession were from people working mid-wage occupations (60%). The chart on the right shows that the majority of jobs gained during the recovery were from people working lower-wage occupations (58%).\" width=\"397\" height=\"218\" \/><\/span>\r\n\r\n<figcaption>Data in the aftermath of the Great Recession suggests that jobs lost were in mid-wage occupations, while jobs gained were in low-wage occupations.<\/figcaption><\/figure>\r\n<p id=\"ch25mod02_p12\">The National Employment Law Project compiled data from the Bureau of Labor Statistics and found that, during the Great Recession, 60% of job losses were in medium-wage occupations. Most of them were replaced during the recovery period with lower-wage jobs in the service, retail, and food industries. This data is illustrated in the above graph.<\/p>\r\n<p id=\"ch25mod02_p13\">Wages in the service, retail, and food industries are at or near minimum wage and tend to be both downwardly and upwardly \u201csticky.\u201d Wages are downwardly sticky due to minimum wage laws; they may be upwardly sticky if insufficient competition in low-skilled labor markets enables employers to avoid raising wages that would reduce their profits. At the same time, however, the Consumer Price Index increased 11% between 2007 and 2012, pushing real wages down.<\/p>\r\n\r\n<\/section><\/div>\r\n&nbsp;\r\n\r\n<\/div>\r\n<\/header><\/div>\r\n<\/section><section id=\"ch25mod02_summ\" class=\"summary\"><\/section><section id=\"ch25mod02_ctques\" class=\"critical-thinking\">\r\n<div id=\"ch25mod02_ctques02\" class=\"exercise\"><\/div>\r\n<\/section>","rendered":"<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/12151009\/16637218912_382efe7ce9_z.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6692 size-medium alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/12151009\/16637218912_382efe7ce9_z-225x300.png\" alt=\"\" width=\"225\" height=\"300\" \/><\/a>John Maynard Keynes, a British economist, is often viewed as the father of modern macroeconomics. \u00a0In 1936 he published the &#8216;<em>General Theory of Employment, Interest and Money<\/em>&#8216; challenging the then prevailing Classical view of the macroeconomy and attempting to explain the instability in the economy exposed by the great depression of the 1930&#8217;s, the cycles of recessions and expansions, and offering policy prescriptions to minimize their harmful effects.<\/p>\n<p id=\"ch25mod03_p02\">The Keynesian theory contends that the macroeconomy is not self correcting as previously thought by Classical economists but inherently unstable. \u00a0Full employment is not a guarantee, any deviation from it tend to be amplified and inflexibility in markets can prevent the economy from returning to full employment.<\/p>\n<p>Keynesian key arguments:<\/p>\n<ul>\n<li>The Classical theory that &#8216;Supply created its own demand&#8217; (Say&#8217;s law) is not supported by events such as the Great Depression and aggregate demand is not always automatically high enough to provide firms with an incentive to hire enough workers to reach full employment.<\/li>\n<li>The macroeconomy may adjust only slowly to shifts in aggregate demand because of\u00a0sticky wages and prices, which are wages and prices that do not respond to decreases or increases in demand.<\/li>\n<li>Any change in spending leads to a greater change in output, which means that the fluctuations of the business cycle are wide by nature.<\/li>\n<\/ul>\n<h2>Supply does not necessarily create its own demand<\/h2>\n<p id=\"ch25mod03_p03\">The first building block of the Keynesian diagnosis is that recessions occur when the level of household and business sector demand for goods and services is less than what is produced when labor is fully employed. In other words, the intersection of aggregate supply and aggregate demand occurs at a level of output less than the level of GDP consistent with full employment. Suppose the stock market crashes, as occurred in 1929. Or, suppose the housing market collapses, as occurred in 2008. In either case, household wealth will decline, and consumption expenditure will follow. Suppose businesses see that consumer spending is falling. That will reduce expectations of the profitability of investment, so businesses will decrease investment expenditure.<\/p>\n<p id=\"ch25mod03_p04\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/12155558\/migrant-mother.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6705 size-medium alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/12155558\/migrant-mother-244x300.png\" alt=\"\" width=\"244\" height=\"300\" \/><\/a>This seemed to be the case during the Great Depression, since the physical capacity of the economy to supply goods did not alter much. No flood or earthquake or other natural disaster ruined factories in 1929 or 1930. No outbreak of disease decimated the ranks of workers. No key input price, like the price of oil, soared on world markets. The U.S. economy in 1933 had just about the same factories, workers, and state of technology as it had had four years earlier in 1929\u2014and yet the economy had shrunk dramatically. This also seems to be what happened in 2008.<\/p>\n<p id=\"ch25mod03_p05\">As Keynes recognized, the events of the Depression contradicted Say\u2019s law that \u201csupply creates its own demand.\u201d Although production capacity existed, the markets were not able to sell their products. As a result, real GDP was less than potential or full employment GDP.<\/p>\n<section id=\"ch25mod03_01\">\n<h1>The Expenditure Multiplier<\/h1>\n<p id=\"ch25mod02_p016\">A key reason behind the instability in the economy is the expenditure multiplier, the idea that not only does spending affect the equilibrium level of GDP, but that spending is powerful. More precisely, it means that a change in spending causes a more than proportionate change in GDP.<\/p>\n<div id=\"ch25mod02_eq1\" class=\"equation\">\n<div class=\"MathJax_Display\"><\/div>\n<div style=\"text-align: center\"><strong>Initial Change in Spending x Expenditure Multiplier = Final Change in GDP<\/strong><\/div>\n<\/div>\n<\/section>\n<div>\n<p>The reason for the expenditure multiplier is that one person\u2019s spending <a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045543\/multiplier.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6733 alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045543\/multiplier.png\" alt=\"\" width=\"400\" height=\"304\" \/><\/a>becomes another person\u2019s income, which leads to additional spending and additional income, and so forth, so that the cumulative impact on GDP is larger than the initial increase in spending. \u00a0The size of the multiplier effect depends on the spending patterns in the economy, more specifically how much our spending is likely to change as income change or our Marginal Propensity to Consume. \u00a0The greater the MPC, the greater the multiplier effect.<\/p>\n<p style=\"text-align: center\"><strong>Expenditure Multiplier = M = 1\/ (1- Marginal Propensity to Consume)<\/strong><\/p>\n<\/div>\n<section id=\"ch25mod03_01\">\n<table class=\"alignleft\" style=\"width: 900px\">\n<tbody>\n<tr>\n<td>&nbsp;<\/p>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045546\/multiplier-ex.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6734\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045546\/multiplier-ex.png\" alt=\"\" width=\"400\" height=\"301\" \/><\/a><\/td>\n<td>&nbsp;<\/p>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14050749\/multiplier-ex-number.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6736\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14050749\/multiplier-ex-number.png\" alt=\"\" width=\"400\" height=\"311\" \/><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>The multiplier occurs with\u00a0any autonomous increase in spending. <a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14055220\/multiplier-graph.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6741 alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14055220\/multiplier-graph.png\" alt=\"\" width=\"400\" height=\"304\" \/><\/a>Additionally, the multiplier operates in a negative as well as a positive direction. Thus, when investment spending collapsed during the Great Depression, it caused a much larger decrease in real GDP. The size of the multiplier is critical and was a key element in recent discussions of the effectiveness of the Obama administration\u2019s fiscal stimulus package, officially titled the\u00a0<span class=\"no-emphasis\">American Recovery and Reinvestment Act of 2009<\/span>.<\/p>\n<\/section>\n<section id=\"ch25mod03_01\">\n<h2>Wage and Price Stickiness<\/h2>\n<p id=\"ch25mod03_p07\">Keynes also pointed out that although AD fluctuated, prices and wages did not immediately respond as economists often expected. Instead, prices and wages are \u201csticky,\u201d making it difficult to restore the economy to full employment and potential GDP. Keynes emphasized one particular reason why wages were sticky: the\u00a0coordination argument. This argument points out that, even if most people would be willing\u2014at least hypothetically\u2014to see a decline in their own wages in bad economic times as long as everyone else also experienced such a decline, a market-oriented economy has no obvious way to implement a plan of coordinated wage reductions.\u00a0Unemployment\u00a0proposed a number of reasons why wages might be sticky downward, most of which center on the argument that businesses avoid wage cuts because they may in one way or another depress morale and hurt the productivity of the existing workers.<\/p>\n<p id=\"ch25mod02_p08\">Some modern economists have argued in a Keynesian spirit that, along with wages, other <span style=\"text-decoration: underline\">prices may be sticky, too<\/span>. Many firms do not change their prices every day or even every month. When a firm considers changing prices, it must consider two sets of costs. First, changing prices uses company resources: managers must analyze the competition and market demand and decide what the new prices will be, sales materials must be updated, billing records will change, and product labels and price labels must be redone. Second, frequent price changes may leave customers confused or angry\u2014especially if they find out that a product now costs more than expected. These costs of changing prices are called\u00a0<span style=\"text-decoration: underline\">menu costs<\/span>\u2014like the costs of printing up a new set of menus with different prices in a restaurant. Prices do respond to forces of supply and demand, but from a macroeconomic perspective, the process of changing all prices throughout the economy takes time.<\/p>\n<p>Because wages and prices tend to be sticky, especially downward, and adjust slowly and not completely, recessions can be deep and long lasting.<\/p>\n<div id=\"ch25mod02_clear01\" class=\"note economics clearup ui-has-child-title\">\n<header>\n<div>\n<div class=\"textbox shaded\"><\/div>\n<\/div>\n<\/header>\n<header>\n<div class=\"title\">WHY IS THE PACE OF WAGE ADJUSTMENTS SLOW?<\/div>\n<\/header>\n<section>\n<p id=\"ch25mod02_p11\">The recovery after the Great Recession in the United States has been slow, with wages stagnant, if not declining. In fact, many low-wage workers at McDonalds, Dominos, and Walmart have threatened to strike for higher wages. Their plight is part of a larger trend in job growth and pay in the post\u2013recession recovery.<\/p>\n<figure id=\"CNX_Econ_C25_028\" class=\"ui-has-child-figcaption\">\n<div class=\"title\">Jobs Lost\/Gained in the Recession\/Recovery<\/div>\n<p><span id=\"CNX_Econ_C25_028m\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/cnx.org\/resources\/6a18a35f24594ed14275e6a4de792291ff47b544\/CNX_Econ_C25_028.jpg\" alt=\"The chart on the left shows that the majority of jobs lost during the recession were from people working mid-wage occupations (60%). The chart on the right shows that the majority of jobs gained during the recovery were from people working lower-wage occupations (58%).\" width=\"397\" height=\"218\" \/><\/span><figcaption>Data in the aftermath of the Great Recession suggests that jobs lost were in mid-wage occupations, while jobs gained were in low-wage occupations.<\/figcaption><\/figure>\n<p id=\"ch25mod02_p12\">The National Employment Law Project compiled data from the Bureau of Labor Statistics and found that, during the Great Recession, 60% of job losses were in medium-wage occupations. Most of them were replaced during the recovery period with lower-wage jobs in the service, retail, and food industries. This data is illustrated in the above graph.<\/p>\n<p id=\"ch25mod02_p13\">Wages in the service, retail, and food industries are at or near minimum wage and tend to be both downwardly and upwardly \u201csticky.\u201d Wages are downwardly sticky due to minimum wage laws; they may be upwardly sticky if insufficient competition in low-skilled labor markets enables employers to avoid raising wages that would reduce their profits. At the same time, however, the Consumer Price Index increased 11% between 2007 and 2012, pushing real wages down.<\/p>\n<\/section>\n<\/div>\n<p>&nbsp;<\/p>\n<\/section>\n<section id=\"ch25mod02_summ\" class=\"summary\"><\/section>\n<section id=\"ch25mod02_ctques\" class=\"critical-thinking\">\n<div id=\"ch25mod02_ctques02\" class=\"exercise\"><\/div>\n<\/section>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-6676\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>multiplier - slide. <strong>Authored by<\/strong>: S.Haci. <strong>Provided by<\/strong>: HCCS. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045543\/multiplier.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045543\/multiplier.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>multiplier # example. <strong>Authored by<\/strong>: S.Haci. <strong>Provided by<\/strong>: HCCS. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14050749\/multiplier-ex-number.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14050749\/multiplier-ex-number.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>multiplier example - slide. <strong>Authored by<\/strong>: S.Haci. <strong>Provided by<\/strong>: HCCS. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045546\/multiplier-ex.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045546\/multiplier-ex.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>multiplier - graph - slide. <strong>Authored by<\/strong>: S.Haci. <strong>Provided by<\/strong>: HCCS. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14055220\/multiplier-graph.png\">https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14055220\/multiplier-graph.png<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Principles of economics - ch 25-2. <strong>Authored by<\/strong>: Openstax. <strong>Provided by<\/strong>: Rice University. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/cnx.org\/contents\/aWGdK2jw@11.345:skKc_Xzr@9\/The-Building-Blocks-of-Keynesi\">https:\/\/cnx.org\/contents\/aWGdK2jw@11.345:skKc_Xzr@9\/The-Building-Blocks-of-Keynesi<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Photo - Keynes. <strong>Authored by<\/strong>: Spudgun67. <strong>Provided by<\/strong>: flickr. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/24701549@N07\/16637218912\/in\/photolist-pQ7qz4-pXbKkd-58YhZb-58TYfr-q2Cbzt-rmb6xW-58UiKZ-p1Q1LH-58TTMP-q7tuhz-pQ95Zm-rD7AaA-pQ95wh-q7BsDq-4ZpEEb-58TU9T-9kjm79-pFe6t1-C9qCyu-pF8Lak-pXyzW4-4BqXNN-9X1UG2-pFctAP-6ekmos-LUcKC-pJP9Hm-5yX6TJ-9nZq8-r9pt4m-rFi6pv-9nZqj-p5n4Nf-UacRD-4TPboc-CxVQpK-vm3ydm-vm4411-vm3Zpo-uFM5ZV-vAjFVA-rdahdM-uMt79L-GqCYyS-DykPei-R8JdKY-roWtaR-qALyuD-q7ttW4-58TXR6\">https:\/\/www.flickr.com\/photos\/24701549@N07\/16637218912\/in\/photolist-pQ7qz4-pXbKkd-58YhZb-58TYfr-q2Cbzt-rmb6xW-58UiKZ-p1Q1LH-58TTMP-q7tuhz-pQ95Zm-rD7AaA-pQ95wh-q7BsDq-4ZpEEb-58TU9T-9kjm79-pFe6t1-C9qCyu-pF8Lak-pXyzW4-4BqXNN-9X1UG2-pFctAP-6ekmos-LUcKC-pJP9Hm-5yX6TJ-9nZq8-r9pt4m-rFi6pv-9nZqj-p5n4Nf-UacRD-4TPboc-CxVQpK-vm3ydm-vm4411-vm3Zpo-uFM5ZV-vAjFVA-rdahdM-uMt79L-GqCYyS-DykPei-R8JdKY-roWtaR-qALyuD-q7ttW4-58TXR6<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>photo - migrant mother 1936. <strong>Authored by<\/strong>: George Eastman Museum. <strong>Provided by<\/strong>: Flickr. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/george_eastman_house\/3334095096\/in\/photolist-65C7jd-8gLyR8-otiLwC-otdfRx-8gQU1J-4jyyPx-64VEva-ouZ9FG-W3Wxp6-cqg1ho-99N15c-eLNvpU-99R9QE-cqoQdy-UEmuWh-qs1zyX-odf59f-cqqWZ1-fUj5hE-cqoQyL-cqqZr9-oeS97h-69w3xR-rpGopo-cqqZe7-qNeDkt-63zg4s-99R8R7-9D2PTW-ow3ct2-cqoEqG-cqr2Uh-cqrcRu-cqr2EQ-9GJBdU-UEDZv7-oyfWZ6-nUVQso-cqrHUY-qk8v9P-cqrgTu-cqopYL-cqopLU-cqrVkS-4jyzxM-9GFL3p-obMwNq-cqrd3C-ov6MjS-6jXLSo\">https:\/\/www.flickr.com\/photos\/george_eastman_house\/3334095096\/in\/photolist-65C7jd-8gLyR8-otiLwC-otdfRx-8gQU1J-4jyyPx-64VEva-ouZ9FG-W3Wxp6-cqg1ho-99N15c-eLNvpU-99R9QE-cqoQdy-UEmuWh-qs1zyX-odf59f-cqqWZ1-fUj5hE-cqoQyL-cqqZr9-oeS97h-69w3xR-rpGopo-cqqZe7-qNeDkt-63zg4s-99R8R7-9D2PTW-ow3ct2-cqoEqG-cqr2Uh-cqrcRu-cqr2EQ-9GJBdU-UEDZv7-oyfWZ6-nUVQso-cqrHUY-qk8v9P-cqrgTu-cqopYL-cqopLU-cqrVkS-4jyzxM-9GFL3p-obMwNq-cqrd3C-ov6MjS-6jXLSo<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/pdm\">Public Domain: No Known Copyright<\/a><\/em><\/li><li>Photo - oil rig. <strong>Authored by<\/strong>: Carolyn. <strong>Provided by<\/strong>: flickr. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/eschipul\/4577657578\/in\/photolist-7YvG7E-r3Q7F-8h5XyH-8Qt9W3-kSAAN-6wAvAD-7YsjyV-kSAKp-xzvZ9-kSAuo-7YvJ2m-7YvBQd-JtkaC-kSAtb-Jtk8A-Jtk9E-kSACR-JtkaJ-5c5DX5-kSAFV-8sDNGA-5nzf6u-fTEQEV-7YvK2J-cc8Q9q-a4dww-W2L3zW-fTEQEp-bULzZz-7FMLC1-5nuYQe-JtkaY-kSAE8-PsDmG-xzPGM-kdzBqx-cskL71-cskLbC-xzPFo-7YfhXH-7YvEYY-7Yiw6m-7Yspx8-5RcSZD-4Lor45-cskKvA-6n5wcC-5nzfD3-mxRMog-88Wpkk\">https:\/\/www.flickr.com\/photos\/eschipul\/4577657578\/in\/photolist-7YvG7E-r3Q7F-8h5XyH-8Qt9W3-kSAAN-6wAvAD-7YsjyV-kSAKp-xzvZ9-kSAuo-7YvJ2m-7YvBQd-JtkaC-kSAtb-Jtk8A-Jtk9E-kSACR-JtkaJ-5c5DX5-kSAFV-8sDNGA-5nzf6u-fTEQEV-7YvK2J-cc8Q9q-a4dww-W2L3zW-fTEQEp-bULzZz-7FMLC1-5nuYQe-JtkaY-kSAE8-PsDmG-xzPGM-kdzBqx-cskL71-cskLbC-xzPFo-7YfhXH-7YvEYY-7Yiw6m-7Yspx8-5RcSZD-4Lor45-cskKvA-6n5wcC-5nzfD3-mxRMog-88Wpkk<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>oil rig worker - photo. <strong>Authored by<\/strong>: Lindsey G. <strong>Provided by<\/strong>: Flickr. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/lindseygee\/5894085313\/in\/photolist-9YQJdz-pTQsen-SUMhyp-9YTy8N-pTYDkb-8bWpWs-86rpTU-9YTxkb-pBsi4m-hrZv6D-9YTCTd-86oR5e-5kVLKz-86rqfN-86ofjz-GDC9nd-nSk5BG-9YQDyx-5kVyL8-cskKYJ-Des66N-8aSG6D-85ZfYY-51NUFh-dWtJuo-83RSHC-886Vkn-886M1P-88mvbK-88a5vy-886JSD-8bcL3b-889Zkw-886NJ6-86kuhK-B8Kas-889Xw5-8cHKpx-889Wu5-86kvPn-8cHKS4-86ktZK-86oEoj-86oF3s-7agAKG-ysdJLv-xfZPY4-8cHKyp-8cM4sL-8cM5a9\">https:\/\/www.flickr.com\/photos\/lindseygee\/5894085313\/in\/photolist-9YQJdz-pTQsen-SUMhyp-9YTy8N-pTYDkb-8bWpWs-86rpTU-9YTxkb-pBsi4m-hrZv6D-9YTCTd-86oR5e-5kVLKz-86rqfN-86ofjz-GDC9nd-nSk5BG-9YQDyx-5kVyL8-cskKYJ-Des66N-8aSG6D-85ZfYY-51NUFh-dWtJuo-83RSHC-886Vkn-886M1P-88mvbK-88a5vy-886JSD-8bcL3b-889Zkw-886NJ6-86kuhK-B8Kas-889Xw5-8cHKpx-889Wu5-86kvPn-8cHKS4-86ktZK-86oEoj-86oF3s-7agAKG-ysdJLv-xfZPY4-8cHKyp-8cM4sL-8cM5a9<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>oil truck photo. <strong>Authored by<\/strong>: raymondclarkeimages. <strong>Provided by<\/strong>: flick. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/rclarkeimages\/23251149714\/in\/photolist-BqCdKC-BSA5pp-nvSubP-4RNyjz-cKZVv3-9Zfu79-88QC4o-fRWprG-6oeTQw-9NEtYQ-9NJybd-7wGNkd-3eoe2z-9Nv8dj-jKJBbE-uwVBLo-8AAtwc-8h2oM7-noZqnX-5cPX56-5DzAjn-7MQP4i-igokqX-fne6PY-jKFeHM-jKFeJt-gdDWvv-fgL4LC-49DVJE-5DPbJR-5wABhM-9sy7jz-8AAto8-5u85Jq-8ADyBu-bmMkLd-8AAtDa-68K1xU-8cbSCU-7ZPEpc-8AAtKv-JaX8X-5HVTAL-hzk6Gm-6MViMA-JaXiM-x48f2-8cth1m-8cpX1B-8cthWU\">https:\/\/www.flickr.com\/photos\/rclarkeimages\/23251149714\/in\/photolist-BqCdKC-BSA5pp-nvSubP-4RNyjz-cKZVv3-9Zfu79-88QC4o-fRWprG-6oeTQw-9NEtYQ-9NJybd-7wGNkd-3eoe2z-9Nv8dj-jKJBbE-uwVBLo-8AAtwc-8h2oM7-noZqnX-5cPX56-5DzAjn-7MQP4i-igokqX-fne6PY-jKFeHM-jKFeJt-gdDWvv-fgL4LC-49DVJE-5DPbJR-5wABhM-9sy7jz-8AAto8-5u85Jq-8ADyBu-bmMkLd-8AAtDa-68K1xU-8cbSCU-7ZPEpc-8AAtKv-JaX8X-5HVTAL-hzk6Gm-6MViMA-JaXiM-x48f2-8cth1m-8cpX1B-8cthWU<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc\/4.0\/\">CC BY-NC: Attribution-NonCommercial<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":18767,"menu_order":6,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Principles of economics - ch 25-2\",\"author\":\"Openstax\",\"organization\":\"Rice University\",\"url\":\"https:\/\/cnx.org\/contents\/aWGdK2jw@11.345:skKc_Xzr@9\/The-Building-Blocks-of-Keynesi\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Photo - Keynes\",\"author\":\"Spudgun67\",\"organization\":\"flickr\",\"url\":\"https:\/\/www.flickr.com\/photos\/24701549@N07\/16637218912\/in\/photolist-pQ7qz4-pXbKkd-58YhZb-58TYfr-q2Cbzt-rmb6xW-58UiKZ-p1Q1LH-58TTMP-q7tuhz-pQ95Zm-rD7AaA-pQ95wh-q7BsDq-4ZpEEb-58TU9T-9kjm79-pFe6t1-C9qCyu-pF8Lak-pXyzW4-4BqXNN-9X1UG2-pFctAP-6ekmos-LUcKC-pJP9Hm-5yX6TJ-9nZq8-r9pt4m-rFi6pv-9nZqj-p5n4Nf-UacRD-4TPboc-CxVQpK-vm3ydm-vm4411-vm3Zpo-uFM5ZV-vAjFVA-rdahdM-uMt79L-GqCYyS-DykPei-R8JdKY-roWtaR-qALyuD-q7ttW4-58TXR6\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"photo - migrant mother 1936\",\"author\":\"George Eastman Museum\",\"organization\":\"Flickr\",\"url\":\"https:\/\/www.flickr.com\/photos\/george_eastman_house\/3334095096\/in\/photolist-65C7jd-8gLyR8-otiLwC-otdfRx-8gQU1J-4jyyPx-64VEva-ouZ9FG-W3Wxp6-cqg1ho-99N15c-eLNvpU-99R9QE-cqoQdy-UEmuWh-qs1zyX-odf59f-cqqWZ1-fUj5hE-cqoQyL-cqqZr9-oeS97h-69w3xR-rpGopo-cqqZe7-qNeDkt-63zg4s-99R8R7-9D2PTW-ow3ct2-cqoEqG-cqr2Uh-cqrcRu-cqr2EQ-9GJBdU-UEDZv7-oyfWZ6-nUVQso-cqrHUY-qk8v9P-cqrgTu-cqopYL-cqopLU-cqrVkS-4jyzxM-9GFL3p-obMwNq-cqrd3C-ov6MjS-6jXLSo\",\"project\":\"\",\"license\":\"pd\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Photo - oil rig\",\"author\":\"Carolyn\",\"organization\":\"flickr\",\"url\":\"https:\/\/www.flickr.com\/photos\/eschipul\/4577657578\/in\/photolist-7YvG7E-r3Q7F-8h5XyH-8Qt9W3-kSAAN-6wAvAD-7YsjyV-kSAKp-xzvZ9-kSAuo-7YvJ2m-7YvBQd-JtkaC-kSAtb-Jtk8A-Jtk9E-kSACR-JtkaJ-5c5DX5-kSAFV-8sDNGA-5nzf6u-fTEQEV-7YvK2J-cc8Q9q-a4dww-W2L3zW-fTEQEp-bULzZz-7FMLC1-5nuYQe-JtkaY-kSAE8-PsDmG-xzPGM-kdzBqx-cskL71-cskLbC-xzPFo-7YfhXH-7YvEYY-7Yiw6m-7Yspx8-5RcSZD-4Lor45-cskKvA-6n5wcC-5nzfD3-mxRMog-88Wpkk\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"oil rig worker - photo\",\"author\":\"Lindsey G\",\"organization\":\"Flickr\",\"url\":\"https:\/\/www.flickr.com\/photos\/lindseygee\/5894085313\/in\/photolist-9YQJdz-pTQsen-SUMhyp-9YTy8N-pTYDkb-8bWpWs-86rpTU-9YTxkb-pBsi4m-hrZv6D-9YTCTd-86oR5e-5kVLKz-86rqfN-86ofjz-GDC9nd-nSk5BG-9YQDyx-5kVyL8-cskKYJ-Des66N-8aSG6D-85ZfYY-51NUFh-dWtJuo-83RSHC-886Vkn-886M1P-88mvbK-88a5vy-886JSD-8bcL3b-889Zkw-886NJ6-86kuhK-B8Kas-889Xw5-8cHKpx-889Wu5-86kvPn-8cHKS4-86ktZK-86oEoj-86oF3s-7agAKG-ysdJLv-xfZPY4-8cHKyp-8cM4sL-8cM5a9\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"oil truck photo\",\"author\":\"raymondclarkeimages\",\"organization\":\"flick\",\"url\":\"https:\/\/www.flickr.com\/photos\/rclarkeimages\/23251149714\/in\/photolist-BqCdKC-BSA5pp-nvSubP-4RNyjz-cKZVv3-9Zfu79-88QC4o-fRWprG-6oeTQw-9NEtYQ-9NJybd-7wGNkd-3eoe2z-9Nv8dj-jKJBbE-uwVBLo-8AAtwc-8h2oM7-noZqnX-5cPX56-5DzAjn-7MQP4i-igokqX-fne6PY-jKFeHM-jKFeJt-gdDWvv-fgL4LC-49DVJE-5DPbJR-5wABhM-9sy7jz-8AAto8-5u85Jq-8ADyBu-bmMkLd-8AAtDa-68K1xU-8cbSCU-7ZPEpc-8AAtKv-JaX8X-5HVTAL-hzk6Gm-6MViMA-JaXiM-x48f2-8cth1m-8cpX1B-8cthWU\",\"project\":\"\",\"license\":\"cc-by-nc\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"multiplier - slide\",\"author\":\"S.Haci\",\"organization\":\"HCCS\",\"url\":\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045543\/multiplier.png\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"multiplier # example\",\"author\":\"S.Haci\",\"organization\":\"HCCS\",\"url\":\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14050749\/multiplier-ex-number.png\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"multiplier example - slide\",\"author\":\"S.Haci\",\"organization\":\"HCCS\",\"url\":\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14045546\/multiplier-ex.png\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"multiplier - graph - slide\",\"author\":\"S.Haci\",\"organization\":\"HCCS\",\"url\":\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/1681\/2017\/07\/14055220\/multiplier-graph.png\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-6676","chapter","type-chapter","status-publish","hentry"],"part":6606,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/pressbooks\/v2\/chapters\/6676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/wp\/v2\/users\/18767"}],"version-history":[{"count":22,"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/pressbooks\/v2\/chapters\/6676\/revisions"}],"predecessor-version":[{"id":7082,"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/pressbooks\/v2\/chapters\/6676\/revisions\/7082"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/pressbooks\/v2\/parts\/6606"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/pressbooks\/v2\/chapters\/6676\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/wp\/v2\/media?parent=6676"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/pressbooks\/v2\/chapter-type?post=6676"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/wp\/v2\/contributor?post=6676"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/hccs-macroeconomics-3\/wp-json\/wp\/v2\/license?post=6676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}