Macroeconomics Graphs

AS/AD

AS/AD

SRAS/LRAS shifters

Productivity

Technology

LLCE

Only SRAS: Cost of input (wages, inflationary expectation, taxes)

AD shifters

C (taxes, income, optimism, interest rates)

I (interest rates, taxes, subsidies, optimism)

G (whatever they want to change)

NX (wealth, exchange rates, trade regulations)

Money Market

Limited Reserves

(Not FED!)

MS shifters

Monetary Policies:

discount rate

Bonds (Open Market Operations)

Reserve Req

MD Shifters

Transactional Demand (GDP and PL changes)

Speculative Demand

Precautionary Demand

Ample Reserves

DR shifters

Administered Interest Rates

(discount rate / interest on reserves)

SR shifters

same as MS shifters, but not important in this graph.

Loanable Funds

DLF Shifters

Gov’t Deficits (can cause crowding out)

number of borrowers

business optimism

SLF shifters

number of savers

change in MS

financial capitol inflow/outflow

Phillips Curve

SRPC shifters

same as SRAS, but in the opposite direction

dot on curve shifters

opposite direction as AD

LRPC shifters

it doesn’t shift because its at NRU

Exchange Rate

shifters

demand for product

relative PL (inflation)

wealth

relative real interest rates