SlideShare a Scribd company logo

Graphs 2 Know For The AP Econ Exam

•Download as PPT, PDF•
•
M
MrRed
TechnologyBusiness
1 of 21
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 GRAPHS 2 KNOW FOR THE AP MACRO EXAMINATION Mr. Redelsheimer AP Macroeconomics 2007-2008
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Q Q Robots (thousands) Pizzas (thousands) 14 13 12 11 10 9 8 7 6 5 4 3 2 1 1 2 3 4 5 6 7 8 A B C D E W Attainable but Inefficient Unattainable Attainable & Efficient PRODUCTION POSSIBILITIES
Production Possibilities Curve ,[object Object],[object Object],[object Object],[object Object],[object Object],“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS AD AGGREGATE DEMAND / AGGREGATE SUPPLY Equilibrium Real Output Y P
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS AD AS/AD: Recession Equilibrium Real Output AS LR Long Run Aggregate Supply (Full Employment) Y P
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS AD AS/AD: Inflation: Beyond Full Employment Equilibrium Real Output AS LR Long Run Aggregate Supply (Full Employment) Y f Y 1 P
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS AD 1 INCREASES IN AD: DEMAND-PULL INFLATION P 2 P 1 AD 2 Yf Y1
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS 1 AD 1 DECREASES IN AS: COST-PUSH INFLATION P 2 Y 1 Y 2 AS 2 P 1
AGGREGATE SUPPLY / AGGREGATE DEMAND ,[object Object],[object Object],[object Object],[object Object],“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 ,[object Object],[object Object],[object Object],[object Object],[object Object]
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 NOMINAL interest rate, i Quantity of Money D m S m THE MONEY MARKET Shift the Supply curve (always vertical) when FED changes the money supply to change nominal interest rates! i ,[object Object],[object Object]
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Real domestic output, GDP D m Investment Demand Graph rate of interest, i 10 8 6 0 Qty. of Money Amount of investment, I MONETARY POLICY AND EQUILIBRIUM GDP S m1 AS AD 1 (I=$15) P 1 10 8 6 0 S m2 AD 3 (I=$25) P 2 If the Money Supply Increases to Stimulate the Economy… ,[object Object],[object Object],[object Object],[object Object],Price level AD 2 (I=$20) P 3 S m3 ,[object Object],[object Object],[object Object],ID rate of interest, i Money Market Graph
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Real Interest Rate, r Quantity of Loanable Funds LOANABLE FUNDS MARKET r D Q S This graph shows how the supply and demand for loanable funds affects real interest rates!
Loanable Funds Market Graph (Long-Term Interest Rates) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 ,[object Object],[object Object],[object Object],[object Object],[object Object]
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 The Market for Yen Quantity of Yen Dollar Price of 1 Yen 0 P Q Q e S y D y THE FOREIGN EXCHANGE MARKET
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 P Q Dy Sy Dollar price of one Yen Quantity of Yen 3 2 1 Dollar depreciates Dollar appreciates The Market for Yen THE FOREIGN EXCHANGE MARKET
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Annual rate of inflation (percent) Unemployment rate (percent) 7 6 5 4 3 2 1 0 1 2 3 4 5 6 7 As inflation declines... THE PHILLIPS CURVE CONCEPT unemployment increases And vice versa! SRPC
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Annual rate of inflation (percent) Unemployment rate (percent) 7 6 5 4 3 2 1 0 1 2 3 4 5 6 7 THE PHILLIPS CURVE CONCEPT SRPC 1 LRPC = Is the natural Rate of Unemployment SRPC 2 With Stagflation, Shift SRPC to the right With AD shift, move along existing SRPC
Phillips Curve ,[object Object],[object Object],[object Object],[object Object],“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 TWO WAYS TO SHOW ECONOMIC GROWTH A B C D Capital Goods Consumer Goods Price Level Real GDP AS LR1 AS LR2 Q 1 Q 2
Causes of Economic Growth ,[object Object],[object Object],[object Object],[object Object],“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005
“ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 BUSINESSES HOUSEHOLDS RESOURCES INPUTS $ COSTS $ INCOMES PRODUCT MARKET GOODS & SERVICES GOODS & SERVICES $ CONSUMPTION $ REVENUE GOVERNMENT RESOURCE MARKET Circular Flow Model

Recommended

Graphs 2 Know For The AP Macro Economics Exam
Graphs 2 Know For The AP Macro Economics ExamGraphs 2 Know For The AP Macro Economics Exam
Graphs 2 Know For The AP Macro Economics ExamMrRed
 
AP Micro Final Exam Review
AP Micro Final Exam ReviewAP Micro Final Exam Review
AP Micro Final Exam ReviewMrRed
 
Common Mistakes On The AP Macro Exam
Common Mistakes On The AP Macro ExamCommon Mistakes On The AP Macro Exam
Common Mistakes On The AP Macro ExamMrRed
 
Module 38 productivity and growth
Module 38 productivity and growthModule 38 productivity and growth
Module 38 productivity and growthAmerican School of Guatemala
 
Aggd&S1
Aggd&S1Aggd&S1
Aggd&S1home
 
Elasticity and Its Application.pptx
Elasticity and Its Application.pptxElasticity and Its Application.pptx
Elasticity and Its Application.pptxMuhammad Umair
 
Macroeconomics_Elasticity and its Applications
Macroeconomics_Elasticity and its ApplicationsMacroeconomics_Elasticity and its Applications
Macroeconomics_Elasticity and its Applicationsdjalex035
 
Chapter 15
Chapter 15Chapter 15
Chapter 15sdugfvna
 

Recommended

Graphs 2 Know For The AP Macro Economics Exam
Graphs 2 Know For The AP Macro Economics ExamGraphs 2 Know For The AP Macro Economics Exam
Graphs 2 Know For The AP Macro Economics ExamMrRed
 
AP Micro Final Exam Review
AP Micro Final Exam ReviewAP Micro Final Exam Review
AP Micro Final Exam ReviewMrRed
 
Common Mistakes On The AP Macro Exam
Common Mistakes On The AP Macro ExamCommon Mistakes On The AP Macro Exam
Common Mistakes On The AP Macro ExamMrRed
 
Module 38 productivity and growth
Module 38 productivity and growthModule 38 productivity and growth
Module 38 productivity and growthAmerican School of Guatemala
 
Aggd&S1
Aggd&S1Aggd&S1
Aggd&S1home
 
Elasticity and Its Application.pptx
Elasticity and Its Application.pptxElasticity and Its Application.pptx
Elasticity and Its Application.pptxMuhammad Umair
 
Macroeconomics_Elasticity and its Applications
Macroeconomics_Elasticity and its ApplicationsMacroeconomics_Elasticity and its Applications
Macroeconomics_Elasticity and its Applicationsdjalex035
 
Chapter 15
Chapter 15Chapter 15
Chapter 15sdugfvna
 
Chapter 2
Chapter 2Chapter 2
Chapter 2Kusters Engineering India Pvt Ltd, Indian subsidiary of Royal Dutch Kusters Engineering BV
 
Module 39 growth policy
Module 39 growth policyModule 39 growth policy
Module 39 growth policyAmerican School of Guatemala
 
Lecture
Lecture Lecture
Lecture U6410
 
Chapter 16
Chapter 16Chapter 16
Chapter 16sdugfvna
 
Business cycle (Abhishek and Aditya)
Business cycle (Abhishek and Aditya)Business cycle (Abhishek and Aditya)
Business cycle (Abhishek and Aditya)lokre
 
Hyperinflation
HyperinflationHyperinflation
HyperinflationNoel J Harrison
 
MACROECONOMICS-CH3
MACROECONOMICS-CH3MACROECONOMICS-CH3
MACROECONOMICS-CH3kkjjkevin03
 
Module 40 economic growth in macroeconomic models
Module 40 economic growth in macroeconomic modelsModule 40 economic growth in macroeconomic models
Module 40 economic growth in macroeconomic modelsAmerican School of Guatemala
 
The adding up problem product exhaustion theorem yohannes mengesha
The adding up problem product exhaustion theorem yohannes mengesha The adding up problem product exhaustion theorem yohannes mengesha
The adding up problem product exhaustion theorem yohannes mengesha Yohannes Mengesha, PhD Fellow
 
capital output ratio
capital output ratiocapital output ratio
capital output ratioKavitha Ravi
 
21 the mundell fleming model
21 the mundell fleming model21 the mundell fleming model
21 the mundell fleming modelBaterdene Batchuluun
 
Mankiw6e chap7
Mankiw6e chap7Mankiw6e chap7
Mankiw6e chap7Cambodian Mekong University
 
Micro ch10-presentation
Micro ch10-presentationMicro ch10-presentation
Micro ch10-presentationListiani Kumala Sari
 
Module 37 long run economicgrowth
Module 37 long run economicgrowthModule 37 long run economicgrowth
Module 37 long run economicgrowthAmerican School of Guatemala
 
Gregory mankiw macroeconomic 7th edition chapter (18)
Gregory mankiw macroeconomic 7th edition chapter (18)Gregory mankiw macroeconomic 7th edition chapter (18)
Gregory mankiw macroeconomic 7th edition chapter (18)Kyaw Thiha
 
Princ ch05-presentation
Princ ch05-presentationPrinc ch05-presentation
Princ ch05-presentationprofessordrcc
 
Business cycle
Business cycleBusiness cycle
Business cycleInstitute of Rural Management
 
5.1 Development Economics Introduction
5.1 Development Economics Introduction5.1 Development Economics Introduction
5.1 Development Economics IntroductionAndrew McCarthy
 
MACROECONOMICS-CH9
MACROECONOMICS-CH9MACROECONOMICS-CH9
MACROECONOMICS-CH9kkjjkevin03
 
Mankiw6e chap12
Mankiw6e chap12Mankiw6e chap12
Mankiw6e chap12Cambodian Mekong University
 
Graphs 2 Know for the AP Macroeconomics Exam
Graphs 2 Know for the AP Macroeconomics ExamGraphs 2 Know for the AP Macroeconomics Exam
Graphs 2 Know for the AP Macroeconomics ExamMrRed
 
Genuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20model
Genuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20modelGenuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20model
Genuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20modelDaniseck Adam
 

More Related Content

What's hot

Lecture
Lecture Lecture
Lecture U6410
 
Chapter 16
Chapter 16Chapter 16
Chapter 16sdugfvna
 
Business cycle (Abhishek and Aditya)
Business cycle (Abhishek and Aditya)Business cycle (Abhishek and Aditya)
Business cycle (Abhishek and Aditya)lokre
 
MACROECONOMICS-CH3
MACROECONOMICS-CH3MACROECONOMICS-CH3
MACROECONOMICS-CH3kkjjkevin03
 
The adding up problem product exhaustion theorem yohannes mengesha
The adding up problem product exhaustion theorem yohannes mengesha The adding up problem product exhaustion theorem yohannes mengesha
The adding up problem product exhaustion theorem yohannes mengesha Yohannes Mengesha, PhD Fellow
 
capital output ratio
capital output ratiocapital output ratio
capital output ratioKavitha Ravi
 
Gregory mankiw macroeconomic 7th edition chapter (18)
Gregory mankiw macroeconomic 7th edition chapter (18)Gregory mankiw macroeconomic 7th edition chapter (18)
Gregory mankiw macroeconomic 7th edition chapter (18)Kyaw Thiha
 
Princ ch05-presentation
Princ ch05-presentationPrinc ch05-presentation
Princ ch05-presentationprofessordrcc
 
5.1 Development Economics Introduction
5.1 Development Economics Introduction5.1 Development Economics Introduction
5.1 Development Economics IntroductionAndrew McCarthy
 
MACROECONOMICS-CH9
MACROECONOMICS-CH9MACROECONOMICS-CH9
MACROECONOMICS-CH9kkjjkevin03
 

What's hot (20)

Chapter 2
Chapter 2Chapter 2
Chapter 2
 
Module 39 growth policy
Module 39 growth policyModule 39 growth policy
Module 39 growth policy
 
Lecture
Lecture Lecture
Lecture
 
Chapter 16
Chapter 16Chapter 16
Chapter 16
 
Business cycle (Abhishek and Aditya)
Business cycle (Abhishek and Aditya)Business cycle (Abhishek and Aditya)
Business cycle (Abhishek and Aditya)
 
Hyperinflation
HyperinflationHyperinflation
Hyperinflation
 
MACROECONOMICS-CH3
MACROECONOMICS-CH3MACROECONOMICS-CH3
MACROECONOMICS-CH3
 
Module 40 economic growth in macroeconomic models
Module 40 economic growth in macroeconomic modelsModule 40 economic growth in macroeconomic models
Module 40 economic growth in macroeconomic models
 
The adding up problem product exhaustion theorem yohannes mengesha
The adding up problem product exhaustion theorem yohannes mengesha The adding up problem product exhaustion theorem yohannes mengesha
The adding up problem product exhaustion theorem yohannes mengesha
 
capital output ratio
capital output ratiocapital output ratio
capital output ratio
 
21 the mundell fleming model
21 the mundell fleming model21 the mundell fleming model
21 the mundell fleming model
 
Mankiw6e chap7
Mankiw6e chap7Mankiw6e chap7
Mankiw6e chap7
 
Micro ch10-presentation
Micro ch10-presentationMicro ch10-presentation
Micro ch10-presentation
 
Module 37 long run economicgrowth
Module 37 long run economicgrowthModule 37 long run economicgrowth
Module 37 long run economicgrowth
 
Gregory mankiw macroeconomic 7th edition chapter (18)
Gregory mankiw macroeconomic 7th edition chapter (18)Gregory mankiw macroeconomic 7th edition chapter (18)
Gregory mankiw macroeconomic 7th edition chapter (18)
 
Princ ch05-presentation
Princ ch05-presentationPrinc ch05-presentation
Princ ch05-presentation
 
Business cycle
Business cycleBusiness cycle
Business cycle
 
5.1 Development Economics Introduction
5.1 Development Economics Introduction5.1 Development Economics Introduction
5.1 Development Economics Introduction
 
MACROECONOMICS-CH9
MACROECONOMICS-CH9MACROECONOMICS-CH9
MACROECONOMICS-CH9
 
Mankiw6e chap12
Mankiw6e chap12Mankiw6e chap12
Mankiw6e chap12
 

Similar to Graphs 2 Know For The AP Econ Exam

Graphs 2 Know for the AP Macroeconomics Exam
Graphs 2 Know for the AP Macroeconomics ExamGraphs 2 Know for the AP Macroeconomics Exam
Graphs 2 Know for the AP Macroeconomics ExamMrRed
 
Genuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20model
Genuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20modelGenuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20model
Genuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20modelDaniseck Adam
 
Chapter 16 Phillips Curve
Chapter 16 Phillips CurveChapter 16 Phillips Curve
Chapter 16 Phillips CurveMrRed
 
3.3 Macro Economic Models
3.3 Macro Economic Models3.3 Macro Economic Models
3.3 Macro Economic ModelsAndrew McCarthy
 
Aggregate Supply / Demand
Aggregate Supply / DemandAggregate Supply / Demand
Aggregate Supply / DemandMrRed
 
Eco 202 ch 34 aggregate demand and aggregate supply
Eco 202 ch 34 aggregate demand and aggregate supplyEco 202 ch 34 aggregate demand and aggregate supply
Eco 202 ch 34 aggregate demand and aggregate supplyGale Pooley
 
Lecture 19 aggregate demand and aggregate supply
Lecture 19 aggregate demand and aggregate supplyLecture 19 aggregate demand and aggregate supply
Lecture 19 aggregate demand and aggregate supplyGale Pooley
 
3006 Slides
3006 Slides3006 Slides
3006 Slidesknksmart
 
3006 Slides
3006 Slides3006 Slides
3006 Slidesknksmart
 
Ch 34 aggregate demand and aggregate supply
Ch 34 aggregate demand and aggregate supplyCh 34 aggregate demand and aggregate supply
Ch 34 aggregate demand and aggregate supplyGale Pooley
 
Aggregate Demand and Aggregate Supply
Aggregate Demand and Aggregate SupplyAggregate Demand and Aggregate Supply
Aggregate Demand and Aggregate SupplyLumen Learning
 
Chap12 part 1_
Chap12 part 1_Chap12 part 1_
Chap12 part 1_Shu Shin
 
Chap12 part 1_
Chap12 part 1_Chap12 part 1_
Chap12 part 1_Shu Shin
 

Similar to Graphs 2 Know For The AP Econ Exam (20)

Graphs 2 Know for the AP Macroeconomics Exam
Graphs 2 Know for the AP Macroeconomics ExamGraphs 2 Know for the AP Macroeconomics Exam
Graphs 2 Know for the AP Macroeconomics Exam
 
Genuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20model
Genuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20modelGenuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20model
Genuine%20 %2005%20-%20 general%20equilibrium%20and%20ad-as%20model
 
Macro 11.pdf
Macro 11.pdfMacro 11.pdf
Macro 11.pdf
 
ch11keynsianmodel.ppt
ch11keynsianmodel.pptch11keynsianmodel.ppt
ch11keynsianmodel.ppt
 
Chapter 16 Phillips Curve
Chapter 16 Phillips CurveChapter 16 Phillips Curve
Chapter 16 Phillips Curve
 
3.3 Macro Economic Models
3.3 Macro Economic Models3.3 Macro Economic Models
3.3 Macro Economic Models
 
Aggregate Supply / Demand
Aggregate Supply / DemandAggregate Supply / Demand
Aggregate Supply / Demand
 
Macro 12
Macro 12Macro 12
Macro 12
 
Eco 202 ch 34 aggregate demand and aggregate supply
Eco 202 ch 34 aggregate demand and aggregate supplyEco 202 ch 34 aggregate demand and aggregate supply
Eco 202 ch 34 aggregate demand and aggregate supply
 
Lecture 19 aggregate demand and aggregate supply
Lecture 19 aggregate demand and aggregate supplyLecture 19 aggregate demand and aggregate supply
Lecture 19 aggregate demand and aggregate supply
 
3006 Slides
3006 Slides3006 Slides
3006 Slides
 
3006 Slides
3006 Slides3006 Slides
3006 Slides
 
Macro 11
Macro 11Macro 11
Macro 11
 
Ch 34 aggregate demand and aggregate supply
Ch 34 aggregate demand and aggregate supplyCh 34 aggregate demand and aggregate supply
Ch 34 aggregate demand and aggregate supply
 
Aggregate Demand and Aggregate Supply
Aggregate Demand and Aggregate SupplyAggregate Demand and Aggregate Supply
Aggregate Demand and Aggregate Supply
 
Macro 12
Macro 12Macro 12
Macro 12
 
Chap12 part 1_
Chap12 part 1_Chap12 part 1_
Chap12 part 1_
 
Chap12 part 1_
Chap12 part 1_Chap12 part 1_
Chap12 part 1_
 
33
3333
33
 
Macro 16
Macro 16Macro 16
Macro 16
 

More from MrRed

Common Mistakes on The AP Macro Exam
Common Mistakes on The AP Macro ExamCommon Mistakes on The AP Macro Exam
Common Mistakes on The AP Macro ExamMrRed
 
Economics Review Unit One
Economics Review Unit OneEconomics Review Unit One
Economics Review Unit OneMrRed
 
Review: Costs of Production, Theory of the Firm
Review: Costs of Production, Theory of the FirmReview: Costs of Production, Theory of the Firm
Review: Costs of Production, Theory of the FirmMrRed
 
Review: Unit One
Review: Unit One Review: Unit One
Review: Unit One MrRed
 
The National Debt
The National DebtThe National Debt
The National DebtMrRed
 
Ap micro review
Ap micro reviewAp micro review
Ap micro reviewMrRed
 
AP Micro Income Inequality
AP Micro Income InequalityAP Micro Income Inequality
AP Micro Income InequalityMrRed
 
AP Micro Government and Market Failure
AP Micro Government and Market FailureAP Micro Government and Market Failure
AP Micro Government and Market FailureMrRed
 
AP Micro Wage Deteremination
AP Micro Wage DetereminationAP Micro Wage Deteremination
AP Micro Wage DetereminationMrRed
 
IRA's
IRA'sIRA's
IRA'sMrRed
 
AP Micro Review - Theory of the Firm
AP Micro Review - Theory of the FirmAP Micro Review - Theory of the Firm
AP Micro Review - Theory of the FirmMrRed
 
AP MIcro Monopolistic Competition and Oligolopy
AP MIcro Monopolistic Competition and OligolopyAP MIcro Monopolistic Competition and Oligolopy
AP MIcro Monopolistic Competition and OligolopyMrRed
 
AP Micro Pure Monopoly
AP Micro Pure MonopolyAP Micro Pure Monopoly
AP Micro Pure MonopolyMrRed
 
AP MIcro Perfect Competition
AP MIcro Perfect CompetitionAP MIcro Perfect Competition
AP MIcro Perfect CompetitionMrRed
 
AP Micro Elasticity
AP Micro ElasticityAP Micro Elasticity
AP Micro ElasticityMrRed
 
Economic Profit vs. Accounting Profit
Economic Profit vs. Accounting ProfitEconomic Profit vs. Accounting Profit
Economic Profit vs. Accounting ProfitMrRed
 
AP MIcro - Consumer Behavior Ch. 21
AP MIcro - Consumer Behavior Ch. 21AP MIcro - Consumer Behavior Ch. 21
AP MIcro - Consumer Behavior Ch. 21MrRed
 
Personal finance presentation
Personal finance presentationPersonal finance presentation
Personal finance presentationMrRed
 
Renaissance Art
Renaissance ArtRenaissance Art
Renaissance ArtMrRed
 
What's A Trillion
What's A TrillionWhat's A Trillion
What's A TrillionMrRed
 

More from MrRed (20)

Common Mistakes on The AP Macro Exam
Common Mistakes on The AP Macro ExamCommon Mistakes on The AP Macro Exam
Common Mistakes on The AP Macro Exam
 
Economics Review Unit One
Economics Review Unit OneEconomics Review Unit One
Economics Review Unit One
 
Review: Costs of Production, Theory of the Firm
Review: Costs of Production, Theory of the FirmReview: Costs of Production, Theory of the Firm
Review: Costs of Production, Theory of the Firm
 
Review: Unit One
Review: Unit One Review: Unit One
Review: Unit One
 
The National Debt
The National DebtThe National Debt
The National Debt
 
Ap micro review
Ap micro reviewAp micro review
Ap micro review
 
AP Micro Income Inequality
AP Micro Income InequalityAP Micro Income Inequality
AP Micro Income Inequality
 
AP Micro Government and Market Failure
AP Micro Government and Market FailureAP Micro Government and Market Failure
AP Micro Government and Market Failure
 
AP Micro Wage Deteremination
AP Micro Wage DetereminationAP Micro Wage Deteremination
AP Micro Wage Deteremination
 
IRA's
IRA'sIRA's
IRA's
 
AP Micro Review - Theory of the Firm
AP Micro Review - Theory of the FirmAP Micro Review - Theory of the Firm
AP Micro Review - Theory of the Firm
 
AP MIcro Monopolistic Competition and Oligolopy
AP MIcro Monopolistic Competition and OligolopyAP MIcro Monopolistic Competition and Oligolopy
AP MIcro Monopolistic Competition and Oligolopy
 
AP Micro Pure Monopoly
AP Micro Pure MonopolyAP Micro Pure Monopoly
AP Micro Pure Monopoly
 
AP MIcro Perfect Competition
AP MIcro Perfect CompetitionAP MIcro Perfect Competition
AP MIcro Perfect Competition
 
AP Micro Elasticity
AP Micro ElasticityAP Micro Elasticity
AP Micro Elasticity
 
Economic Profit vs. Accounting Profit
Economic Profit vs. Accounting ProfitEconomic Profit vs. Accounting Profit
Economic Profit vs. Accounting Profit
 
AP MIcro - Consumer Behavior Ch. 21
AP MIcro - Consumer Behavior Ch. 21AP MIcro - Consumer Behavior Ch. 21
AP MIcro - Consumer Behavior Ch. 21
 
Personal finance presentation
Personal finance presentationPersonal finance presentation
Personal finance presentation
 
Renaissance Art
Renaissance ArtRenaissance Art
Renaissance Art
 
What's A Trillion
What's A TrillionWhat's A Trillion
What's A Trillion
 

Recently uploaded

Artificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptxArtificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptxhariprasad279825
 
Powerpoint exploring the locations used in television show Time Clash
Powerpoint exploring the locations used in television show Time ClashPowerpoint exploring the locations used in television show Time Clash
Powerpoint exploring the locations used in television show Time Clashcharlottematthew16
 
The Future of Software Development - Devin AI Innovative Approach.pdf
The Future of Software Development - Devin AI Innovative Approach.pdfThe Future of Software Development - Devin AI Innovative Approach.pdf
The Future of Software Development - Devin AI Innovative Approach.pdfSeasiaInfotech2
 
SAP Build Work Zone - Overview L2-L3.pptx
SAP Build Work Zone - Overview L2-L3.pptxSAP Build Work Zone - Overview L2-L3.pptx
SAP Build Work Zone - Overview L2-L3.pptxNavinnSomaal
 
WordPress Websites for Engineers: Elevate Your Brand
WordPress Websites for Engineers: Elevate Your BrandWordPress Websites for Engineers: Elevate Your Brand
WordPress Websites for Engineers: Elevate Your Brandgvaughan
 
CloudStudio User manual (basic edition):
CloudStudio User manual (basic edition):CloudStudio User manual (basic edition):
CloudStudio User manual (basic edition):comworks
 
"LLMs for Python Engineers: Advanced Data Analysis and Semantic Kernel",Oleks...
"LLMs for Python Engineers: Advanced Data Analysis and Semantic Kernel",Oleks..."LLMs for Python Engineers: Advanced Data Analysis and Semantic Kernel",Oleks...
"LLMs for Python Engineers: Advanced Data Analysis and Semantic Kernel",Oleks...Fwdays
 
Training state-of-the-art general text embedding
Training state-of-the-art general text embeddingTraining state-of-the-art general text embedding
Training state-of-the-art general text embeddingZilliz
 
Connect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck PresentationConnect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck PresentationSlibray Presentation
 
DevoxxFR 2024 Reproducible Builds with Apache Maven
DevoxxFR 2024 Reproducible Builds with Apache MavenDevoxxFR 2024 Reproducible Builds with Apache Maven
DevoxxFR 2024 Reproducible Builds with Apache MavenHervé Boutemy
 
My Hashitalk Indonesia April 2024 Presentation
My Hashitalk Indonesia April 2024 PresentationMy Hashitalk Indonesia April 2024 Presentation
My Hashitalk Indonesia April 2024 PresentationRidwan Fadjar
 
SIP trunking in Janus @ Kamailio World 2024
SIP trunking in Janus @ Kamailio World 2024SIP trunking in Janus @ Kamailio World 2024
SIP trunking in Janus @ Kamailio World 2024Lorenzo Miniero
 
Vector Databases 101 - An introduction to the world of Vector Databases
Vector Databases 101 - An introduction to the world of Vector DatabasesVector Databases 101 - An introduction to the world of Vector Databases
Vector Databases 101 - An introduction to the world of Vector DatabasesZilliz
 
Transcript: New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
Transcript: New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024Transcript: New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
Transcript: New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024BookNet Canada
 
DevEX - reference for building teams, processes, and platforms
DevEX - reference for building teams, processes, and platformsDevEX - reference for building teams, processes, and platforms
DevEX - reference for building teams, processes, and platformsSergiu Bodiu
 
AI as an Interface for Commercial Buildings
AI as an Interface for Commercial BuildingsAI as an Interface for Commercial Buildings
AI as an Interface for Commercial BuildingsMemoori
 
Scanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL CertsScanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL CertsRizwan Syed
 
Search Engine Optimization SEO PDF for 2024.pdf
Search Engine Optimization SEO PDF for 2024.pdfSearch Engine Optimization SEO PDF for 2024.pdf
Search Engine Optimization SEO PDF for 2024.pdfRankYa
 
Unraveling Multimodality with Large Language Models.pdf
Unraveling Multimodality with Large Language Models.pdfUnraveling Multimodality with Large Language Models.pdf
Unraveling Multimodality with Large Language Models.pdfAlex Barbosa Coqueiro
 
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024BookNet Canada
 

Recently uploaded (20)

Artificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptxArtificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptx
 
Powerpoint exploring the locations used in television show Time Clash
Powerpoint exploring the locations used in television show Time ClashPowerpoint exploring the locations used in television show Time Clash
Powerpoint exploring the locations used in television show Time Clash
 
The Future of Software Development - Devin AI Innovative Approach.pdf
The Future of Software Development - Devin AI Innovative Approach.pdfThe Future of Software Development - Devin AI Innovative Approach.pdf
The Future of Software Development - Devin AI Innovative Approach.pdf
 
SAP Build Work Zone - Overview L2-L3.pptx
SAP Build Work Zone - Overview L2-L3.pptxSAP Build Work Zone - Overview L2-L3.pptx
SAP Build Work Zone - Overview L2-L3.pptx
 
WordPress Websites for Engineers: Elevate Your Brand
WordPress Websites for Engineers: Elevate Your BrandWordPress Websites for Engineers: Elevate Your Brand
WordPress Websites for Engineers: Elevate Your Brand
 
CloudStudio User manual (basic edition):
CloudStudio User manual (basic edition):CloudStudio User manual (basic edition):
CloudStudio User manual (basic edition):
 
"LLMs for Python Engineers: Advanced Data Analysis and Semantic Kernel",Oleks...
"LLMs for Python Engineers: Advanced Data Analysis and Semantic Kernel",Oleks..."LLMs for Python Engineers: Advanced Data Analysis and Semantic Kernel",Oleks...
"LLMs for Python Engineers: Advanced Data Analysis and Semantic Kernel",Oleks...
 
Training state-of-the-art general text embedding
Training state-of-the-art general text embeddingTraining state-of-the-art general text embedding
Training state-of-the-art general text embedding
 
Connect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck PresentationConnect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck Presentation
 
DevoxxFR 2024 Reproducible Builds with Apache Maven
DevoxxFR 2024 Reproducible Builds with Apache MavenDevoxxFR 2024 Reproducible Builds with Apache Maven
DevoxxFR 2024 Reproducible Builds with Apache Maven
 
My Hashitalk Indonesia April 2024 Presentation
My Hashitalk Indonesia April 2024 PresentationMy Hashitalk Indonesia April 2024 Presentation
My Hashitalk Indonesia April 2024 Presentation
 
SIP trunking in Janus @ Kamailio World 2024
SIP trunking in Janus @ Kamailio World 2024SIP trunking in Janus @ Kamailio World 2024
SIP trunking in Janus @ Kamailio World 2024
 
Vector Databases 101 - An introduction to the world of Vector Databases
Vector Databases 101 - An introduction to the world of Vector DatabasesVector Databases 101 - An introduction to the world of Vector Databases
Vector Databases 101 - An introduction to the world of Vector Databases
 
Transcript: New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
Transcript: New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024Transcript: New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
Transcript: New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
 
DevEX - reference for building teams, processes, and platforms
DevEX - reference for building teams, processes, and platformsDevEX - reference for building teams, processes, and platforms
DevEX - reference for building teams, processes, and platforms
 
AI as an Interface for Commercial Buildings
AI as an Interface for Commercial BuildingsAI as an Interface for Commercial Buildings
AI as an Interface for Commercial Buildings
 
Scanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL CertsScanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL Certs
 
Search Engine Optimization SEO PDF for 2024.pdf
Search Engine Optimization SEO PDF for 2024.pdfSearch Engine Optimization SEO PDF for 2024.pdf
Search Engine Optimization SEO PDF for 2024.pdf
 
Unraveling Multimodality with Large Language Models.pdf
Unraveling Multimodality with Large Language Models.pdfUnraveling Multimodality with Large Language Models.pdf
Unraveling Multimodality with Large Language Models.pdf
 
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
New from BookNet Canada for 2024: BNC CataList - Tech Forum 2024
 

Graphs 2 Know For The AP Econ Exam

  • 1. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 GRAPHS 2 KNOW FOR THE AP MACRO EXAMINATION Mr. Redelsheimer AP Macroeconomics 2007-2008
  • 2. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Q Q Robots (thousands) Pizzas (thousands) 14 13 12 11 10 9 8 7 6 5 4 3 2 1 1 2 3 4 5 6 7 8 A B C D E W Attainable but Inefficient Unattainable Attainable & Efficient PRODUCTION POSSIBILITIES
  • 3.
  • 4. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS AD AGGREGATE DEMAND / AGGREGATE SUPPLY Equilibrium Real Output Y P
  • 5. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS AD AS/AD: Recession Equilibrium Real Output AS LR Long Run Aggregate Supply (Full Employment) Y P
  • 6. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS AD AS/AD: Inflation: Beyond Full Employment Equilibrium Real Output AS LR Long Run Aggregate Supply (Full Employment) Y f Y 1 P
  • 7. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS AD 1 INCREASES IN AD: DEMAND-PULL INFLATION P 2 P 1 AD 2 Yf Y1
  • 8. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Price Level Real Domestic Output, GDP Q P AS 1 AD 1 DECREASES IN AS: COST-PUSH INFLATION P 2 Y 1 Y 2 AS 2 P 1
  • 9.
  • 10.
  • 11.
  • 12. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Real Interest Rate, r Quantity of Loanable Funds LOANABLE FUNDS MARKET r D Q S This graph shows how the supply and demand for loanable funds affects real interest rates!
  • 13.
  • 14. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 The Market for Yen Quantity of Yen Dollar Price of 1 Yen 0 P Q Q e S y D y THE FOREIGN EXCHANGE MARKET
  • 15. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 P Q Dy Sy Dollar price of one Yen Quantity of Yen 3 2 1 Dollar depreciates Dollar appreciates The Market for Yen THE FOREIGN EXCHANGE MARKET
  • 16. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Annual rate of inflation (percent) Unemployment rate (percent) 7 6 5 4 3 2 1 0 1 2 3 4 5 6 7 As inflation declines... THE PHILLIPS CURVE CONCEPT unemployment increases And vice versa! SRPC
  • 17. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 Annual rate of inflation (percent) Unemployment rate (percent) 7 6 5 4 3 2 1 0 1 2 3 4 5 6 7 THE PHILLIPS CURVE CONCEPT SRPC 1 LRPC = Is the natural Rate of Unemployment SRPC 2 With Stagflation, Shift SRPC to the right With AD shift, move along existing SRPC
  • 18.
  • 19. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 TWO WAYS TO SHOW ECONOMIC GROWTH A B C D Capital Goods Consumer Goods Price Level Real GDP AS LR1 AS LR2 Q 1 Q 2
  • 20.
  • 21. “ Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005 BUSINESSES HOUSEHOLDS RESOURCES INPUTS $ COSTS $ INCOMES PRODUCT MARKET GOODS & SERVICES GOODS & SERVICES $ CONSUMPTION $ REVENUE GOVERNMENT RESOURCE MARKET Circular Flow Model