Shifters for AP Macro

AD

Consumption, investment, monetary, fiscal policy, net exports

SRAS

Invisible hand, input cost, supply shocks

LRAS

Land, labor, capital, technology, possibly foreign trade

Money Market

Real GDP, price level, buying and selling government bonds (OMO)

Loanable Funds

Incentive to save or invest, deficit spending, budget surplus, monetary policy

SRPC

SRAS (Invisible hand, money supply, supply shocks)

LRPC

Employment, land, labor, capital, technology, possibly foreign trade

Foreign exchange

Interest rate, recession or inflation, one country invests in other

PPC

• Change in the quantity or quality of resources.

• Change in technology.

• Trade.