AP Econ Shifters

Demand Shifters

1. Tastes and Preferences
2. Number of Consumers
3. Price of Related Goods
4. Income
5. Future Expectations

Supply Shifters

1. Prices/Availability of Inputs (Resources)
2. Number of Sellers
3. Technology
4. Government Action (Taxes and Subsidies)
5. Expectations of a Future Profit

Aggregate Demand Shifters

C + I + G + Xn

Short-Run Aggregate Supply Shifters

1. Change in Resource Prices
2. Change in Actions of the Government
3. Changes in Productivity

Long-Run Aggregate Supply

1. PERMANENT Change in Resource Quantity or Quality
2. PERMANENT Change in Technology/Productivity

Money Demand Shifters

1. Change in Price Level
2. Change in Income
3. Change in Technology - better financial technology will cause less of a demand for physical money.

Money Supply Shifters

1. Reserve Ratio
-> Lower Reserve Ratio: MS Increase; Higher Reserve Ratio: MS Decrease
2. Discount Rate
-> Lower Discount Rate: MS Increase; Higher Discount Rate: MS Decrease
3. Open Market Operations
-> Selling Bonds: MS Decrease; Buying Bonds: MS Increase

IF ON AMPLE RESERVES:
1. Interest-on-Reserves
-> Higher Interest: MS Decrease; Lower Interest: MS Increase

Loanable Funds Demand Shifters

1. Changes in borrowing by consumers
2. Changes in borrowing by businesses
3. Changes in borrowing by the government

Loanable Funds Supply Shifters

1. Change in private savings
2. Change in public savings
3. Change in foreign investment

Short-Run Phillips Curve Shifters

1. Changes in SRAS
-> An increase in SRAS will decrease the SRPC; A decrease in SRAS will increase the SRPC

A CHANGE IN AD WILL MOVE THE DOT ALONG THE GRAPH INSTEAD OF SHIFTING THE GRAPH.

Long-Run Phillips Curve Shifters

NONE