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A2 Macro Diagrams
10th May 2008
In our revision session today we were discussing which diagrams can be used in A2 macro questions. Here is the initial list we came up with ... can students and teachers suggest more? I will happily put together a powerpoint with the diagrams suggested.
1. Economic cycle
2. AD-AS analysis to show
a. Positive and negative output gaps
b. Demand-side shocks
c. Supply-side shocks
d. Changes in an economy’s productive potential (LRAS)
3. Consumption function (changes in mpc and wealth effects etc)
4. Investment demand curve (plus shifts in)
5. Short run Phillips Curve and expectations augmented curve
6. Change in the NAIRU
7. Causes of deflation (malign and benign)
8. Natural rate of unemployment
9. Laffer Curve
10. Comparative advantage and the PPF
11. Import controls – impact on economic welfare
12. Lorenz Curve and inequality (standard of living questions)
13. Kuznets Curve (inequality / environment)
14. Foreign exchange market diagrams (supply and demand) for floating and fixed systems
15. The J curve and reverse J-curve effects
16. Crowding out resulting from rising government borrowing
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.