Macro Graph Review 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 1 PFC 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) 2. Both General Mills and Post must stop production and clean their factories. 3 Business Cycle Draw and label the 4 phases 4 Investment Demand Show the impact of a change in the real interest rate from 4 to 6%. 5 AS/AD/LRAS ' Meekland is currently in a recession. 6 Money market The Federal Reserve runs an expansionary monetary policy. 7 Loana ble funds market The US Treasury sells bonds in order to borrow money, show the impact. __ ' Bond market _ The Federal Reserve buys bonds. q Phillips Curve Currently the inflation is 0.5% and unemployment is 8%. (ex-acted inflation 2%, NRU 5%) I0 AD to Phillips Curve Show demand pull inflation on both graphs. ll SRAS to Phillips Curve Show cost push inflation on both graphs. I; Eco Growth (two graphs) Illustrate economic growth '3 Exchange rates US kids all want a newest Japanese video game, show the impact. (US Dollar and la - anese Yen)