Econ Graphs

Production Possibilies Labels

x: consumer goods, y: capital goods (or two different given products/goods)

on curve: efficient

under curve: inefficient

outside of curve: impossible

bowed out: increasing opp cost

linear: constant opp cost

PPC Shifters

change in quantity/quality of resources, tech, or trade

Supply and Demand Labels

x: quantity, y: price

downward slope: demand

upward slope: supply

Demand Shifters

tastes/preferences, numer of consumers, price of related goods/substitutes, income, expectations

Supply Shifters

prices/availability of resources, number of sellers, tech, govt action, price of related goods, expectations

ADAS Labels

x: rGDP, y: Price Level

downward slope: AD

upward slope: SRAS

vertical line: LRAS, Yf

AD Shifters

connsumption, investments, govt spending, and net exports (CIGXn)

SRAS Shifters

resource prices, actions by govt, productivity (RAP)

LRAS Shifters

change in quantity/quality of resources, tech, and trade (same as PPC shifters) aka long run economic growth

Money Market Labels

x: Quantity of Money, y: nominal interest rate

downward slope: D of Money

vertical line: S of Money

Demand of Money Shifters

price level, changes in income (rGDP), and changes in tech (PIT)

Supply of Money Shifters

reserve requirement, discount rate, open market opp (limited)

Reserve Market Labels

x: Quantity of Reserves, y: Policy Rate

downward zigzag: Demand for Reserves

vertical line: Supply of Reserves

upper demand: discount rate (don’t label)

lower demand: interest on reserves (don’t label)

Demand of Reserves Shifters

administered rates/interest on reserves (ample)

Supply of Reserve Shifters

same as Supply of Money BUT pointless to shift this for ample reserves

Loanable Funds Labels

x: quantity of loans, y: real interest rates

downward slope: demand for loans

upward slope: supply of loans

Demand of Loans Shifters

changes in borrowing by consumers, businesses, or the govt

Supply of Loans Shifters

changes in private savings (income-tax revenue-consumption), public savings (tax revenue-spending), and foreign investment

Phillips Curve Labels

x: unemployment rate, y: inflation rate

downward slope: SRPC

vertical line: LRPC & NRU

@ equilibrium: full employment

right of equilibrium: recessionary gap

left of equilibrium: inflationary gap

SRPC Shifters

shift in SRAS (shift in AD moves along SRPC)

LRPC Shifters

not common, change in NRU (frictional+structural UE)

FOREX Labels

x: quantity of dollars, y: foreign currency per dollar

downward slope: demand for dollars

upward slope: supply of dollars

equilibrium: exchange rate

Demand & Supply of Dollars Shifters

tastes and preferences, income, price level, interest rates