Grapghs for Macro and Micro Flashcards
How to grapgh exteranalities
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
How to grapgh PPF
good 1 on x axis an good 2 on y axis
how to grapgh Supply and demand
price on y axis and quantitty on x
AD-SRAS grapgh and what do you have?
so you have LRAS,
ON the x axis we have the real gdp
on the y axis we have the aggregate price level
Liquidity preference model and what do you have?
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