RIR
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RIR DLF RIR LF SLF PSLF DLF RIR LF PSLF SLF MC MB PPF Good x Good y LS LD PF RGDP RWR Labor MS MD NIR QM AD PL RGDP AS S D P Q LS LD RWR Labor DLF RIR LF SLF Surplus Market effecting Price Floor shortage, Market effecting Price Ceili Goods & Services Labor Loanable Funds Deficit DurpluD
description
Various Graphs. AS. NIR. MS. PL. RGDP. Good x. PF. PPF. MD. AD. Good y. MC. LS. RWR. QM. RGDP. MB. LD. Labor. Loanable Funds. Goods & Services. Labor. P. S. LS. RIR. RWR. SLF. Surplus Market effecting Price Floor. shortage, Market effecting Price Ceiling. D. LD. - PowerPoint PPT Presentation
Transcript of RIR
RIR
DLF
RIR
LF
SLFPSLF
DLF
RIR
LF
PSLFSLF
MC
MB
PPFGood x
Good yLS
LD
PFRGDP
RWR
Labor
MS
MD
NIR
QM
AD
PL
RGDP
AS
S
D
P
Q
LS
LD
RWR
Labor
DLF
RIR
LF
SLFSurplus Market effecting Price Floor
shortage, Market effecting Price Ceiling
Goods & Services Labor Loanable Funds
Deficit DurpluD
_____________Market _____________Market
Graph ChapterPPF 3S/D 4PF 8LS/LD 9
Graph ChapterSLF/DLF 10MS/MD 12AS/AD 13
PPF
Goodx PF
RGDP
GOODy
Labor
Attainable, inefficient Attainable
Unattainable
Unattainable
Attainable, efficient
D
S1P
Q
S2
D
S2P
Q
S1
CURVE SHIFTS:price of good/service (graphed) = qty Sprice of substitute in production = Sprice of complement in production = Sresource price or other input price = SFuture Prices expected to = Snumber of sellers = Sproductivity = S
D1
D2
SP
Q
D2
D1
SP
QCURVE SHIFTS:price of good/service (graphed) = qty D price of substitute in consumption = D price of complement in consumption = DIncome (inferior good) = DIncome (normal good) = DFuture Prices expected to = DFuture Income expected to = Dnumber of buyers = Din preferences = D (item A) and D (item B)
LD
LS1RWR
LABOR
LS2
LD
LS2RWR
LABOR
LS1
CURVE SHIFTS: LS = income taxes LS = unemployment benefits LS = population
LD1
LD2
LSRWR
LABOR
LD2
LD1
LSRWR
LABOR
LD = Productivity
DLF
SLF1RIR
LF
SLF2
DLF
SLF2RIR
LF
SLF1
CURVE SHIFTS: SLF = Disp. income SLF = Wealth SLF = Exp. Future income
DLF1
DLF2
SLFRIR
LF
DLF2
DLF1
SLFRIR
LF
CURVE SHIFTS: DLF = Exp. profit
Bus. Cycle expansionTechnology, successful new products Population
MD
MS2MS1NIR
QMMD
MS1MS2NIR
QM
CURVE SHIFTS: MS = RRR MS = Disc rate MS = Selling Securities
MS = banks make smaller or less loans MS = people deposit less money
LONG RUN:Fed makes Open Mkt purchase Qty $ NIR RIR borrowing/investing (spending habits change) change in production and prices Thus, Shortrun NIR adjusts, Longrun PL adjusts
Short run qty$ = IR Long run qty$ = price levelV = inflation rate
MD1
MD2
MSNIR
QM
MD2
MD1
MSNIR
QM
CURVE SHIFTS: MD = PL MD = RGDPFinancial Technology
MD = ATMs MD = Credit Cards
AD
AS1PL
RGDP
AS2
AD
AS2PL
RGDP
AS1
CURVE SHIFTS: AS = Pot. GDP AS = MWR AS = Money price of other resource
LONG RUN:price level MD NIR RIR spending qty RGDP demanded ADprice level RWR
AD1
AD2
ASPL
RGDP
AD2
AD1
ASPL
RGDPCURVE SHIFTS: AD = Exp. Future income, inflation, profits AD = taxes AD = Transfer pmts/Govt. Expenditure AD = qty money AD = Interest rate AD = Foreign Income AD = Global economy (expands) AD = Exchange rate
exchange rate (from 100yen to 125 yen for $1) = cheaper foreign goods (12,500yen goes from $125 to $100) = imports (we buy more of their goods) = AD (and less of ours)
LD
LSWAGE
LABOR
D
SP
Q
LABOR SURPLUS SURPLUS
LD
LSWAGE
LABOR
D
SP
Q
LABOR SHORTAGE SHORTAGE
