Diagrams are very important for economics exams. Adding a relevant diagram to your essay will bring a strong support for your argument and will help you score a maximum of marks. A good grasp of diagrams is also essential for multiple choice questions.
The golden rule for diagrams is that they must be
✓ Accurate
✓ Big
✓ Clear
✓ Adapted to the question
Here is a list of the key macroeconomics diagrams you must be familiar with before sitting for your A level economics exam (Paper 32 and paper 42).
Economic growth
1. Actual economic growth
Actual economic growth PPC 2. Potential economic growth
Potential economic growth Potential economic growth on the PPC curve 3. Actual growth and potential growth
Actual growth and potential growth The macroeconomy
4. Positive output gap
5. Kuznet curve
6. Optimum population
Optimum population diagram 7. Cyclical unemployment
8. Increasing aggregate demand
Increasing aggregate demand 9. Keynesian 45 degree diagram
Keynesian 45 degree diagram
10. Rise in aggregate expenditure
Rise in aggregate expenditure 11 Sector economy
Four sector economy equilibrium 12. Inflationary gap, deflationary gap and impact on government spending
Inflationary gap, deflationary gap and impact on government spending 13. Increase in autonomous investment
Increase in autonomous investment 14. Liquidity preference
16. Liquidity trap
17. Effect of inflation on the external value of the currency
Effect of inflation on the external value of the currency 18. Phillips curve
19. The Laffer curve
20. Tax deadweight loss
21 Fiscal and monetary policy (in the case policy causes a fall in aggregate demand)
22 Supply-side policy (in the case policy causes a rise in aggregate supply)
