Fold your 11 by 17 paper in half (long way), then in half again, and then into thirds (like a letter). See the diagram on the other side of this paper. Scenarios to graph Macro Graph Review 1 PPC Meekland makes only consumer goods and capital goods (resources are not transferable) Westland bakery makes only bread and scones (resources are transferable) 2 Supply/Demand 1. News report: tiny insects found in 80% of breakfast cereal. (market for breakfast cereal) 3 Business Cycle 4 Investment Demand 5 AS/AD/LRAS 2. Both General Mills and Post must stop production and clean their factories. Draw and label the 4 phases Show the impact of a change in the real interest rate from 4 to 6%. Meekland is currently in a recession. 6 Money market The Federal Reserve runs an expansionary monetary policy. 7 Loanable funds market 3 Bond market The US Treasury sells bonds in order to borrow money, show the impact. The Federal Reserve buys bonds. Phillips Curve (expected inflation 2%, NRU 5%) i0 AD to Phillips Curve Currently the inflation is 0.5% and unemployment is 8%. Show demand pull inflation on both graphs. ll SRAS to Phillips Curve Show cost push inflation on both graphs. D. Eco Growth (two graphs) '3 Exchange rates (US Dollar and Japanese Yen) Illustrate economic growth US kids all want a newest Japanese video game, show the impact