Graphs

• What does the product possibility frontier represent?

  It represents the maximum amount of each product a business can produce at one time.
• What does point A on the product possibility frontier indicate?

  Point A indicates the maximum production of good X with no production of good Y.
• What does point B on the product possibility frontier indicate?

  Point B indicates the maximum production of good Y with no production of good X.
• What does it mean if production is below the middle arrow on the product possibility frontier?

  It means the business is producing the maximum of good X and good Y simultaneously.
• What does the middle section with the arrows on the product possibility frontier represent?

  It represents the level the business could expand to in a year's time if they increase efficiency.
• What do points C and D on the product possibility frontier indicate?

  Points C and D indicate growth has occurred, similar to points A and B.
• What are the 5 boxes of a circular flow diagram

  -Financial institutions

  -Households

  -Firms

  -Governments

  -Other economies
• What does a circular flow model look like

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• Where does a firms money come from and go to

  Money out

  -Taxes

  -Consumer experience

  
  

  Money in

  -Exports

  -Capital investment
• Where does a governments money go and come in from

  Money in

  -Taxation

  Money out

  -Government experince
• Where does a households money go and come in from

  Money in

  -Governement experience

  Money out

  -Taxation

  -Imports

  -Savings

  -Consumer experience
• Where does a financial instiutions money come in and go to

  Money in

  -Savings

  -Consumer experience

  Money out

  -Capital investment

  -Intrest
• Where do other economies money come in and go to

  Money in

  -Imports

  -Factor incomes

  Money out

  -Exports
• What does the aggerate demand curve look like

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• What makes the aggerate demand curve to shift to the right

  -Increase in household spending

  -Increase in capital investment

  -Increase in government consumption

  -Increase in exports

  -Increase in imports
• Make makes aggerate demand shift to the left

  -Decrease in household spending

  -Decrease in capital investment

  -Decrease in governement consumption

  -Decrease in exports

  -Decrease in imports
• What does a shift in AD curves look like

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• What does a short run aggerate supply graph look like

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• What can effect the rate of aggerate supply

  A rise in the price level causes an expansion of aggerate supply 

  A fall in the price level causes a concerntration of aggerate supply  
• What can cause an outward shift in the rate of aggerate supply

  An outward shift in the aggerate supply curve might have been caused by a rise in labour productivity or perhaps a decline in energy cost. 
• What can cause an inward shift in the aggerate supply graph

  Rise in intrest rate or taxes
• What does the aggerate supply and demand equilibrium graph look like

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• What does an increase to aggerate demand do to an aggerate demand and supply graph

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• What does an increase in aggerate supply do to a aggerate demand and supply graph short term

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• What does a decreaae in aggerate supply look like on an aggerate supply and demand graph

  
• What does the product possibility frontier graph look like


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• Explain the product posibility frontier graph

  -Along the line of AB is the maximum a business can produce currently

  -Along line CD is the maximum a business can produce in a year if they increase efficiency
• What does a keynesian curve look like

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• Explain a keynesian curve

  The Keynesian curve illustrates the relationship between real GDP and price levels. It shows that at low levels of output, aggregate supply is perfectly elastic due to unused capacity, while at higher output levels, supply becomes inelastic, leading to rising prices as full capacity is approached.
• What does the long run aggerate supply graph look like

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• What does short run aggerate supply graph look like

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• Explain the short run aggerate supply graph

  The short-run aggregate supply (SRAS) curve shows the relationship between the price level and output, assuming some input prices (like wages) are fixed. It slopes upward, indicating that as prices rise, firms increase production due to higher profits, but this is only temporary until costs adjust.
• What causes a shift in the short run aggerate supply graph

  A rise in a wages and fixed costs
• What does a shift in the short run aggerate supply graph look like

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• What does the output gap graph look like

  
• What does the economic cycle graph look like

  
• What does the PPF graph look like in micro economics

  
• What does the product possibility frontier look like in micro economics

  
• What is the difference between the PPF and PPFE in micro economics
• Whats this graph

  Phillips curve