Phillips Curve dynamics
Master the Inflation-Unemployment tradeoff. Separate short-run movements along the SRPC (Demand Shocks) from catastrophic shifts of the entire curve (Supply Shocks causing Stagflation).
RELATED VISUALIZATIONS
AP MACROECONOMICS
Foreign Exchange Market
Visualize currency Appreciation and Depreciation on the forex market. Shift Supply and Demand curves for US Dollars relative to the Euro based on dynamic global conditions.
AP MACROECONOMICS
Money Multiplier
Deconstruct Fractional Reserve Banking. Track an initial deposit dynamically chaining through multiple bank node T-accounts via Excess Reserve lending.
AP MACROECONOMICS
Money Market
Explore the money market where the supply and demand for money determine the nominal interest rate. Visualize how the Federal Reserve controls money supply through open market operations, reserve requirements, and the discount rate. Understand the inverse relationship between bond prices and interest rates, how changes in money supply shift the vertical MS curve, and how the Fed uses monetary policy to influence economic activity, inflation, and employment.
AP MACROECONOMICS
Crowding Out Effect
Observe how Government Deficit spending spikes Real Interest Rates in the Loanable Funds Market, inadvertently Crowding Out private business investment.