Macro Graphs

Aggregate demand shifters

Consumption + investment + gov spending + net exports

Aggregate supply shifters

Wages, productivity, business taxes, business regulations, inflation expectations

(All cause leftward shifts if inc)

Demand shifters

Preferences, price of related goods (substitutes and complements), market size, income (normal goods vs inferior), expectations for future

Supply shifters

Input prices, gov tools (taxes, subsidies(inc supply), regulations (Dec supply)), competition, technology, prices of other goods, consumer expectations

Business trough

Expansion, contraction, peaks, troughs

Long run aggregate supply shifters

Wages flexible and adjust to new price levels

Shifters

• quantity of resources

• Quality of resources

• Productivity

• Technology

Anything that shifts PPC shifts LRAS

PPC shifters

Changes in availability of resources, number of resources, tech, labor

Shifters of SRPC

Changes to aggregate supply

Shifters of LRPC

Changes to natural rate of unemployment

Movement along SRPC

Changes in aggregate demand

money market demand shifters

Ag price level, real GDP, tech, basically changes in AD

Money market supply shifters

Monetary policy conducted by central banks

Loanable funds market demand shifters

Changes in perceived business opportunities, changes in gov borrowing

Loanable funds market supply shifters

Changes in saving behavior, changes in foreign investment