Macro Graphs

Question 1

Production Possibilities Curve (PPC)

Answer 1

Y-axis: Capital Goods
X-axis: Consumer Goods

Question 2

Supply and Demand

Answer 2

Y-axis: Price
X-axis: Quantity

Curves:
-QS (upward slope)
-QD (downward slope)

Question 3

AD-AS

Answer 3

Y-axis: Price Level
X-axis: Real GDP

Curves:
-AD
-AS
-LRAS: vertical line bc wages are flexible in long run

Question 4

Phillip’s Curve

Answer 4

Y-axis: Inflation
X-axis: Unemployment
Curves:
-SRPC (downward slope, mirror image of AS)
-LRPC

Question 5

Money Market

Answer 5

Y-axis: Nominal Interest Rate
X-axis: QMoney

Curves:
-SMoney
-DMoney

Question 6

Reserve Market Graph

Answer 6

Y-axis: Policy Rate
- Discount Rate (ceiling)
- FFR/IORB (floor)
X-axis: QReserves

Curves:
-SReserves (vertical line)
-DReserves (downward slope, bound by floor and ceiling)

Question 7

Loanable Funds Graph

Answer 7

Y-axis: Real IR
X-axis: QLoans

Curves:
-SLenders
-DBorrowers

Question 8

Aggregate Production Function

Answer 8

Y-axis: Real GDP per worker
X-axis: Physical Capital per worker

Curve: Productivity

Question 9

FOREX Market

Answer 9

Y-axis: Exchange rate (other country’s currency/this currency)
X-axis: QCurrency

Curves:
-SCurrency
-DCurrency