Circular Flow Model
Production Possibilities Frontier
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:
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:
- 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]