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Key to Practice Graph Quiz # 1
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Increase in Money Supply
MS MS1 i i1 MD Q Q1 Q MS .: i%↓
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Increase in the Supply of Loanable Funds
Q q q1 SLF .: r% ↓ & QLF ↑
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Valentines Day Cards Decrease in Supply S1 P S p1 p D Q q1 q
S .: P↑ & Q↓
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C↑, IG↑, G↑ and/or XN↑ .: AD .: GDPR↑ & PL↑ .: u%↓ & π%↑
Increase in AD LRAS AS PL PLf PLe AD1 AD Ye YF GDPR C↑, IG↑, G↑ and/or XN↑ .: AD .: GDPR↑ & PL↑ .: u%↓ & π%↑
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Economic Growth Illustrated
Capital Goods PPC PPC1 Consumer Goods
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So the Euro Depreciates and the U.S. Dollar Appreciates
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