AP ECONOMICS: April 18 Warm-up Using the LRAS-AS-AD Model and starting from equilibrium at full employ- ment, show the long-run impact on AD, AS, and.

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AP ECONOMICS: April 18 Warm-up Using the LRAS-AS-AD Model and starting from equilibrium at full employment, show the long-run impact on AD, AS, and LRAS (if any) from an increase in: (1) Business investment; and (2) Consumption. LRAS-AS-AD Model (from 2:00) A.P. Economics Learning Target In order to understand how an open economy interacts with the rest of the world, I will learn how transactions in the financial markets and product markets impact exchange rates. I will know I have it when I can draw FOREX market graphs showing the impact of flows of items between countries. --FOREX market graphs (axes labels & basic shifts) (see HO from yesterday) -why S & D of currencies may increase -why S & D of currencies may decrease -begin Worksheet 42.4 (HO) Note: impact on balance of trade means impact on exports and imports (if X>M then trade surplus; if X<M then trade deficit) Assignment --GC Assignment #28 (Module 41) --study for your AP Exams