Macro Graphs, Illustrations & Tables

Macro Key

G, I, T Description
GGraph(s)
Titles in Orange are new to 2E.
For Graphs with a red G, Prof. Cohen also explains shifting curves in an MP4 Narrated Dynamic Graph.
IIllustration
TTable
Chapter 1: Scarcity, Opportunity Cost, Trade, and Models

Figure

Title

G, I, T

Page

1.1

Jill’s Production Possibilities

T, G

8

1.2

Marie’s Production Possibilities

T, G

8

1.3

Opportunity Costs for Jill and Marie

T

10

1.4

Mutually Beneficial Gains from Trade

G

11

1.5

Circular Flow of Economic Life

I

14

1.6

Three Keys to Smart Choices

I

19

Chapter 2: The Law of Demand

Figure

Title

G, I, T

Page

2.1

Your Demand for Beats Headphones

T

34

2.2

Market Demand for Water

T, G

35

2.3

Two Ways to Read a Demand Curve

G

36

2.4

An Increase in Demand for Beats Headphones

T, G

40

2.5

More Consumers Increase the Market Demand for Water

T, G

44

2.6

Change in Quantity Demanded versus a Change in Demand

G

45

2.7

Law of Demand and Changes in Demand

T

46

Chapter 3: The Law of Supply

Figure

Title

G, I, T

Page

3.1

Your Supply of Hours Worked

T

55

3.2

Paola’s Parlour Production Possibilities Frontier

T, G

56

3.3

Paola’s Parlour’s Marginal Opportunity Costs

T

58

3.4

Increasing Marginal Opportunity Cost

T, G

59

3.5

Market Supply of Piercings

T, G

61

3.6

Two Ways to Read a Supply Curve

G

62

3.7

Increase in Market Supply of Piercings

T, G

65

3.8

Change in Quantity Supplied versus a Change in Supply

G

69

3.9

Law of Supply and Changes in Supply

T

70

Chapter 4: Demand and Supply

Figure

Title

G, I, T

Page

4.1

Market Demand and Supply for Piercings

T, G

81

4.2

Increase in Demand

T, G

88

4.3

Decrease in Demand

T, G

89

4.4

Increase in Supply

T, G

90

4.5

Decrease in Supply

T, G

91

4.6

The Effects of Combined Changes in Demand and Supply

G

93

4.7

Effects of Changes in Demand or Supply

T

94

4.8

Marginal Benefit and Consumer Surplus

G

96

4.9

Marginal Cost and Producer Surplus

G

97

4.10

Measuring the Miracle of Markets

G

98

4.11

Inefficient Outcomes

G

100

Chapter 5: Macroeconomics and Microeconomics

Figure

Title

G, I, T

Page

5.1

Circular Flow of Economic Life

I

111

5.2

Broken Connections in the Circular Flow

I

114

5.3

The Fundamental Macroeconomic Question

T

119

Chapter 6: GDP, Economic Growth, and Business Cycles

Figure

Title

G, I, T

Page

6.1

Nominal GDP and Real GDP, 1926 – 2013

G

134

6.2

Nominal GDP and Real GDP, 2002 – 2013

G

135

6.3

Value Added Equals Value of Final Products and Services

T

137

6.4

Simple Circular Flow without Government

I

138

6.5

Simple GDP Circular Flow of Income & Spending

I

139

6.6

Enlarged GDP Circular Flow of Income and Spending ($)

I

140

6.7

Enlarged GDP Circular Flow of Income and Spending ($) with Banking System

I

142

6.8

Potential GDP per Person and Real GDP per Person, 1926 – 2011

G

145

6.9

Potential GDP per Person and Real GDP per Person, 1980 – 2011

G

145

6.10

A Macro Production Possibilities Frontier and Economic Growth

G

146

6.11

Labour Force Participation Rates for Men and Women, 1951 – 2013

G

147

6.12

Annual Growth Rates of Canadian Real GDP per Person, 1926 – 2013

G

150

6.13

Growth in Real GDP per Person, Industrialized Countries 1870 – 2010

G

151

6.14

Rule of 70

T

152

6.15

Most Recent Complete Canadian Business Cycle

G

156

Chapter 7: Unemployment & Inflation

Figure

Title

G, I, T

Page

7.1

Labour Force Categories for Working-Age Population

G

168

7.2

Unemployment Rates in Canada, 1926 – 2013

G

170

7.3

Unemployment and Underutilization of Labour, July 2014

T

171

7.4

Provincial Unemployment Rates, July 2014

T

172

7.5

Types of Unemployment

T

174

7.6

Output Gaps and Unemployment

T

176

7.7

Consumer Price Index Basket

G

178

7.8

Inflation Rates in Canada, 1960 – 2013

G

179

7.9

Inflation Rates and Core Inflation Rates in Canada, 1985 – 2013

G

180

7.10

Simple Circular Flow

I

186

7.11

Phillips Curve in Canada, 1946 – 1969

G

190

7.12

Phillips Curve in Canada, 1946 – 2013

G

192

7.13

Types of Inflation

T

193

Chapter 8: Aggregate Supply and Aggregate Demand

Figure

Title

G, I, T

Page

8.1

Production Possibilities Frontier and Long-Run Aggregate Supply

G

202

8.2

Short-Run and Long-Run Aggregate Supply

T, G

205

8.3

Increase in Potential GDP

G

206

8.4

Input Prices and Aggregate Supply

G

207

8.5

Supply Shocks and Short-Run Aggregate Supply

G

208

8.6

Law of Short-Run Aggregate Supply and Changes in Short-Run Aggregate Supply

T

209

8.7

Enlarged GDP Circular Flow of Income and Spending ($) with Banking System

I

210

8.8

Aggregate Demand

T, G

211

8.9

Demand Shocks and Aggregate Demand

G

215

8.10

Law of Aggregate Demand and Changes in Aggregate Demand

T

218

8.11

Short-Run and Long-Run Macroeconomic Equilibrium

G

219

8.12

The Loanable Funds Market

T, G

221

8.13

Economic Growth, Rising Living Standards, and Stable Prices

G

222

8.14

Negative Demand Shock

G

224

8.15

Positive Demand Shock

G

225

8.16

Negative Supply Shock – Stagflation

G

226

8.17

Positive Supply Shock – Increase in Potential GDP

G

227

8.18

Origins of Shocks and Business Cycles

T

232

Chapter 9: Demanders and Suppliers of Money

Figure

Title

G, I, T

Page

9.1

Demand for Money

T, G

248

9.2

An Increase in the Demand for Money

T, G

249

9.3

The Money Supply

I

252

9.4

Chartered Banks: Sources and Uses of Funds

T

256

9.5

Supply of Money

T, G

257

9.6

Demand and Supply for Money

T, G

260

9.7

Domestic Monetary Transmission Mechanism

I

263

9.8

How Much Does Money Matter for Business Cycles and
How Quickly Markets Adjust?

T

268

Chapter 10: Exchange Rates and Payments with the Rest of the World

Figure

Title

G, I, T

Page

10.1

Exchange Rate of Canadian Dollar in U.S. Dollars, 1970 – 2014

G

277

10.2

Demand for Canadian Dollars in Foreign Exchange Market

T, G

278

10.3

Price of Tim Hortons Coffee in Canada and the United States

T

279

10.4

Supply of Canadian Dollars in Foreign Exchange Market

T, G

280

10.5

Foreign Exchange Market for Canadian Dollars

T, G

281

10.6

Foreign Exchange Cross Rates

T

283

10.7

Increase in Demand and Decrease in Supply of Canadian Dollars
in Foreign Exchange Market

T, G

285

10.8

Decrease in Demand and Increase in Supply of Canadian Dollars
in Foreign Exchange Market

T, G

286

10.9

Forces Changing the Price of the Canadian Dollar

T

290

10.10

International Transmission Mechanism

I

291

10.11

Big Mac Purchasing Power Parity Index

T

298

10.12

Canada’s Balance of Payments Accounts 2013

T

301

Chapter 11: Monetary Policy and the Bank of Canada

Figure

Title

G, I, T

Page

11.1

Bank of Canada Homepage

I

315

11.2

Initial Demand and Supply in the Money Market

T, G

317

11.3

Demand and Supply in the Money Market after Bank of Canada Buys Bonds

T, G

318

11.4

Demand and Supply in the Money Market after Bank of Canada Sells Bonds

T, G

319

11.5

Short-Run and Long-Run Interest Rates in Canada, 1979 – 2013

G

320

11.6

Enlarged GDP Circular Flow oF Income and Spending ($) with Banking System

I

322

11.7

Bank of Canada and Domestic Monetary Transmission Mechanism

I

323

11.8

Bank of Canada and International Transmission Mechanisms

I

325

11.9

Lowering Interest Rates Causes a Positive Demand Shock

G

326

11.10

Raising Interest Rates Causes a Negative Demand Shock

G

327

11.11

Transmission Effects of Monetary Policy

T

328

11.12

Inflation Rates and Targets in Canada, 1960 – 2013

G

337

Chapter 12: Fiscal Policy, Deficits and National Debt

Figure

Title

G, I, T

Page

12.1

Enlarged GDP Circular Flow of Income and Spending with Banking System

I

350

12.2

The Multiplier Effect

G

352

12.3

The Multiplied Effect of Government Spending on Aggregate Demand

G

354

12.4

Expansionary Fiscal Policy to Fill a Recessionary Gap

G

356

12.5

Contractionary Fiscal Policy to Fill annInflationary Gap

G

357

12.6

Positive Supply Shock and Economic Growth

G

360

12.7

The Laffer Curve

G

363

12.8

Government Revenues for 2012 – 2013

G

365

12.9

Government Spending for 2012 – 2013

G

366

12.10

Government of Canada Budgets, Selected Years, 1992 -2014

T

366

12.11

Canada’s National Debt as a Percentage of GDP, 1926 – 2013

G

372

12.12

Self-Perpetuating Debt on a Credit Card

T

375

Chapter 13: Globalization and Trade Policy

Figure

Title

G, I, T

Page

13.1

The Importance of International Trade: Exports and Imports as Percentage
of GDP, Selected Countries, 2012

G

389

13.2

Jill’s Production Possibilities

T, G

390

13.3

Marie’s Production Possibilities

T, G

391

13.4

Opportunity Costs for Jill and Marie

T

393

13.5

Mutually Beneficial Gains from Trade

G

393

13.6

Canadian Tariffs, 1867- 2014

G

398

13.7

Government and Global Markets: Hands-Off or Hands-On?

T

410