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Overview Graphs MICRO

d l
190092
g,

Best Affordable

consumption Point

7 7 7
d
good S^
INDIFFERENCE BUDGET LINE
CURVE

^
> d th
good g


BAEZ total
output

BAFA

price
A'BOUR
7
"

>

DEMAND CURVE 9
labour
DEMAND CURVE [ CURVE

^
^ d labour
y
.

(
costs
AP
mparrogainaf Mp •

'
AP

Mp
>
-

y 7
Labour
labour
q
MARGINAL PRODUCT LABOUR AVERAGE LABOUR PRODUCT LABOUR COSTS

Total cost TC
^
TVC MC
^

ATC

TFC
.

/ I
AFC
> 7
-

TOTAL Quantity AVERAGE COSTS


COSTS
TC
r

TR
Th d
f- MC
TC

•s

> a
Q
ECONOMIC PROFIT SUPPLY CURVE

price price price


^
Me a
MC
n
MC


ATC


ATC
ATC

ANC ANC Loss ANC

I
> > >
Q Q Q
ECONOMIC PROFIT
BREAKEVEN POINT - SHUTDOWN POINT
-

i r
r
s s
s

price

price

price

D D

> s s

EQUILIBRIUM OVERPRODUCTION UNDERPRODUCTION

Pd
n r
p

i
P f- Msc
SC Cg
Cs

S - MSC Po

D- MSB
pu :@ D= MSB D MSB
jig
. . . .
-

>
> 7 Q
WELFARE EQUILIBRIUM 9 WELFARE UNDERPRODUCTIONQ WELFARE OVERPRODUCTION
or a
Short
MC Short
( ATC

i ' ÷
Long
/ ' ATC

ATC
y
- - - - - - - - -
- -
- - -

Longmclong
-

>

LONG-TERM COST
ECONOMIES OF SCALE

^
it t
• TM Maximum
P A

zest

}
p •
AR
An MR
B

inelastic

D
C C

> A OB >
y
.
• •

9 MR C
Q
AVERAGE REVENUE
MONOPOLY Q
TR
MONOPOLY MARGINAL REVENUE MONOPOLY

pd MC

Pm . . . . - -
a . - -.
.
ATC
;
Profit
{ DWL

÷
"
:
D
"

y
Qm MR
9
PROFIT
MONOPOLY
i
r

5- Msc
f- Msc f- Msc
CS as
i
-
-
- i -
- - - r .

- -
,
-
- -

as ÷
:p, DWL DWL
I evt' increased

: PS searching ;
:

PS
D-MSB
D- MSB
D -
MSB
> 7
y
'

PRICE FLOOR QUOTA PRICE CEILING


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s
Sts Stt
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iz TAX :D WL
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D D= MSB
>
7
SUBSIDY TAX

^ n
UMP W

> >
£
L
DEMAND FOR LABOUR LABOUR Supply

N interest

✓ Mp rate

> 7
CAPITAL DEMAND Capital CAPITAL SUPPLY capital

r
r
inelastic Msc
supply
P
rent
MSB
MSC MC
MC

demand
① MSB
-

> >
RENEWABLE RESOURCES
9 COMMON RESOURCES 9
MACRO

Manned
Aggregate Expenditure 450 eine
actual

HGTCTX Mi -

OE AE
I q og OE
og
A b
• at It Gtf

It Gtx

HG

>
.
.

Real GDP

AGGREGATE EXPENDITURE

waving
MPS --
O

>
income


SAVINGS FUNCTION
^
real
real 't interest
interest rate
rate

> 7
LF
DEMAND LF
LF
Supply LF

A nominal 1
I interest nominal
rate interest
rate

> > Real


MONEY DEMAND Real Money MONEY SUPPLY Money
'
n n
Rr SLF ↳noetic
Rr ftp.mes.c Rr
Int
<
Lending >
Domestic Rr
Slfwarsa

~

;
Domestic
Rr
< >
INT SLFW.ua
DLF
Borrowing DLF DLF
-
s s

WORLD LF MARKET LF LF
LF
EQUILIBRIUM
INT BORROWER INT LENDER

Planned AE,
AE •
AE,
h
Price
LAS •
AE
.

Level .

>
Real GDP
SAS
^
Price
Level ooo

AD •

HAD
> >

ASAD Model
Real p
Real P
-

CONNECTION AE -

AD

priced DAS SAS's ~ LAS


Price
level SAS ,
q -
Level
SAS,

f r SAS ,
→ SASE

T
r

T SAS
AD, → .

ADL
AD
ADN
AD
>
AD
Real GDP >
DEMAND -
PULL INFLATION Real
COST -

PUSH INFLATION app

^ a
Real Real LS
GDP ⑨ wage
potential GDP Rate
& Full
Employment

L LD
• > Labour
>
Labour

PRODUCTION FUNCTION AGGREGATE LABOUR


^ ^
Real
IS Real
ds. LS
wage >
wage
Rate Rate
a
00


at
LD
DD LD
>
>
Labour
Labour
r d •

Real • → Real 9
GDP GDP •

> >
Labour Labour
POPULATION GROWTH LABOUR PRODUCTIVITY
Outlays
Receipts outlays
^ LAS Refits
Receipts
Receipts -

:p fess
Structural
s
:*:c ::c:: a
:*:* .
sun .

Outlays Outlays
> S

GDP 'P
CYCLICAL GOVERNMENT STRUCTURAL GOVERNMENT
DEFICIT &
SURPLUS DEFICIT & SURPLUS

Fax ~

Rate
Revenue Lag
of Price

)
Increase

of Production

/

Inflation

> >

LAFFER CURVE Tax Rate


PHILIPP'S CURVE Unemployment
Interest
Rate
I decreased MS increased
MS MS

>

MD
>
Real
MONETARY POLICY money

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