AP Macroeconomics: Key Graphs and Shifters Explained

Shifters of Demand

1. Tastes and Preferences

2. Related goods and services (price of)

3. Income

4. Buyers (number of)

5. Expectation of price

TRIBE

Shifters of Supply Curve

1. Resource cost

2. Other goods' prices

3. Taxes, Subsidies, Government regulation

4. Technology (productivity)

5. Expectations of the Producers

6. Number of firms

ROTTEN

Shifters of aggregate demand curve

1. C: Consumer Spending

2. I: Investment Spending

3. G: Government Spending

4. Xn: Net Exports (Exports-Imports)

C+I+G+Xn

Shifter of Short Run Aggregate Supply

1. Productivity Changes

2. Input Price Changes

3. Expected Changes in Inflation

PIE

Shifters of Money Market Graph

1. change in the nominal interest rate will simply cause movement along the money demand curve

2. Money demand can shift in response to changes in real output (real GDP) or in the price level (inflation)

3. Money supply will not shift unless there is a change in central bank policy targeted at the money supply

Shifters of Demand of Loanable Funds

1. All Borrowing, Lending, Credit

2. Deficit Spending

3. Expectations of Future Economic Conditions

Shifters of Supply of Loanable Funds

1. Monetary Policy

2. Saving in the Economy

3. Foreign Exchange Changes