# Tips

### Circular Flow Model

Can you fill out what’s missing from this diagram? Practice makes perfect!

### Production Possibilities Frontier

These are some awesome videos if you are having trouble understanding production possibilities.

### Market Analysis

Below is a handy little introduction to Supply and Demand in a market.

### Market Analysis (continued)

The first resource below is a guide to help you answer market analysis questions completely, label all parts of your graph correctly, and present your conclusions clearly. There are lots of components to remember!

Below is a handy and comprehensive study guide for supply and demand shifters.

Practice with some example problems below:

### Aggregate Market

Use this interactive graph to practice shifts in an aggregate market!

### Money Multiplier & Reserve Ratio

**Reserve Ratio:** The fraction of deposits that banks hold as reserves

**Money Multiplier: **The amount of money the banking system generates with each dollar of reserves (reciprocal of RR)

Practice with these example problems:

[box]

- RR = 5%, Change in reserves = $10 billion. MM = ______ ; Change in MS = _________
- RR = _______, Change in reserves = −$1,000. MM = 5 ; Change in MS = _________
- RR = 100%, Change in reserves = $10 billion. MM = ______ ; Change in MS = ________ [/box]