AP Macroeconomics Key Graphs

I. Production Possibility Curve

A. Efficiency
B. Inefficiency
C. Attainable versus unattainable combinations
D. Growth

II. Demand and Supply Graphs

A. Showing equilibrium
B. Shifts in supply or demand curves and effects

III. Circular Flow Model

A. Simple model: household and business, resource and product market
B. Simple model with government added
C. Open-economy macro model

IV. Business Cycle

A. Phases
1. Peak
2. Recession or contraction
3. Trough
4. Recovery or expansion

V. Aggregate Demand and Aggregate Supply

A. Equilibrium price level and output
B. AS long run and short run
C. Shifts in AD and AS curves (short run and long run)
D. Effects of fiscal and monetary policy actions

VI. Phillips Curve

A. Shape in short run and long run
B. Effects of AD shifts
C. Effects of AS shifts
D. Long-run position at natural rate of unemployment

VII. Money Market Graph

A. Equilibrium nominal rate of interest and quantity of money
B. Shifts of supply of and demand for money
C. Effect of shifts on equilibrium interest rate

VIII. Loanable Funds Market

A. Equilibrium real rate of interest and quantity of money
B. Shifts of supply of and demand for money
C. Effect of shifts on equilibrium interest rate

IX. Flexible Exchange Rates

A. Equilibrium price of currency and quantity of currency (equilibrium exchange rate)
B. Shifts of supply of and demand for currency
C. Effect of shifts on price of currency