Grapghs for Macro and Micro Flashcards

1
Q

How to grapgh exteranalities

A

First you put cost/beenift on y axis
then you put quantity on x axis

for negative externalities:
There will be two MPC and MSC and MSC is greater than MPC

For postiive externalities:
MSB is greater than MPB so there will be MSC=MPC

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2
Q

How to grapgh PPF

A

good 1 on x axis an good 2 on y axis

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3
Q

how to grapgh Supply and demand

A

price on y axis and quantitty on x

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4
Q

AD-SRAS grapgh and what do you have?

A

so you have LRAS,

ON the x axis we have the real gdp

on the y axis we have the aggregate price level

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5
Q

Liquidity preference model and what do you have?

A

Is the money demand grapgh

so you have LRAS as Potienal ouput AG=Aggregae demand

SRAS=short run aggregate supply

O the Y axis we have interest rates
on the x axis we have quatity of money

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6
Q
A
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