Remember our two points on the Pigou Curve:
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Here is the Pigou Curve for our example:
As the definition suggests, the rate of growth of RGDP demanded is on the horizontal axis and the rate of inflation on the vertical axis. This Pigou curve looks very much like the AD curve from which it was created, except that the scales are different -- of course, that is no surprise. But the numbers are unrealistically large for the U. S. in the twentieth century. So let's finish up with a more "realistic" example from the same spreadsheet.
Realistic Numbers
