Macro Graphs Aggregate Demand Aggregate Supply Activity Shifts

Macro Graphs ? ? ? ? ?

Aggregate Demand Aggregate Supply Activity Shifts the aggregate demand curve Components of the graph of the aggregate demand aggregate supply model Shifts the aggregate supply curve Match determinants of the demand for money here. Match components of the money market here. Create and label graph. Match determinants of the supply of money here. 2

Check Your Answers Shifts the aggregate demand curve Δ Investment Δ Government spending Δ Net exports The component of aggregate demand affected by household purchases of new vehicles The component of aggregate demand that can be affected if businesses believe the economy will significantly expand or contract in the future The component of aggregate demand most affected when a country undertakes the repair of vital infrastructure such as roads and bridges The component of aggregate demand affected by a change in the number of cell phones that U. S. residents purchase from Asian countries Price Level Δ Consumption Graph of the aggregate demand aggregate supply model AS Shifts the aggregate supply curve Δ Price of inputs Δ Productivity or resource quality Δ Legalinstitutional environment PLe A change in the wages paid to workers in the economy is an example of this determinant of short-run aggregate supply Improvements in human capital and new technology is an example of this determinant of short-run aggregate supply Changes in subsidies, corporate tax rate, or business regulations are examples of this determinant of short-run aggregate supply AD Ye RGDP 3

Money Market Model Activity Shifts the demand for money curve Components of the graph of the money market Shifts the supply of money curve Match determinants of the demand for money here. Match components of the money market here. Create and label graph. Match determinants of the supply of money here. 4

Shifts the demand for money curve Δ in Price level Δ Real income Δ Real interest rates Δ Paymentrelated technology Changes in the average level of prices of all goods and services in the economy affecting the of money people hold amount at each nominal interest rate Changes in the inflation adjusted income of consumers in the economy affect the amount of money people hold at each nominal interest rate Changes in the inflation adjusted interest rates of consumers in the economy affect the amount of money people hold at each nominal interest rate Changes in the methods consumers in the economy use to pay for goods and services affect the amount of money people hold at each nominal interest rate Check Your Answers Components of the graph of the money market Supply of Money (Sm) Shifts the supply of money curve Δ in open market A change in the volume of purchases or sales of bonds operations Δ Reserve ratio Δ Discount rate Demand for Money (Dm) Qm Quantity of Money Δ Interest on excess reserves specified by the Federal Open Market Committee for the purpose of targeting a lower or higher federal funds rate A change in the percentage of demand deposits financial institutions must hold (not lend) as specified by the Federal Open Market Committee for the purpose of targeting a lower or higher federal funds rate A change in the interest rate charged by the Federal Reserve when making loans to financial institutions for the purpose of targeting a lower or higher federal funds rate A change in the interest rate paid on the excess reserves of financial institutions held with the Federal Reserve for the purpose of targeting a lower or higher federal funds rate

Loanable Funds Market Model Activity Shifts the demand loanable funds curve Components of the graph of the loanable funds market Shifts the supply of loanable funds curve Match determinants of the demand for loanable funds here. Match components of the loanable funds market here. Create and label the graph. Match determinants of the supply of loanable funds here. 6

Check Your Answers Δ in expected return on investment Δ in government deficit spending A determinant of loanable funds demand based on whether firms in the economy expect the rate of return on investments in capital to be higher or lower in the future A determinant of loanable funds demand involving changes in the amount the government needs to borrow in order to pay for public goods and services Shifts the supply of loanable funds curve Components of the graph of the loanable funds market Real Interest Rate Shifts the demand for loanable funds curve Slf Δ in disposable income of consumers Δ in foreign investment re Dlf Qe Quantity of Loanable Funds A determinant of the supply of loanable funds. When consumers have a change in disposable income, they will also have a change in the amount of income they save A determinant of the supply of loanable funds involving a change in the amount of financial capital foreigners invest in the economy

Go. Formative Instructions 1. 2. 3. 4. Use your device and navigate to https: //goformative. com/. Click “Join Code” at the top of the screen. Wait for your teacher to display your code on the website. Enter code and click “Show Your Work” to answer the question(s). 5. Illustrate the change to each graph using your finger or the drawing tools that are explained below. Freehand drawing Changes line width Insert text Straight line drawing Select item to send to trash Free hand erase Undo last change Draw a square Draw a circle Insert image 8