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12.0 The Basic Macro Model

12.0 The Basic Macro Model. 12.1.1. Each micro concept has an analogous macro concept price : Price Level (P) quantity exchanged: real GDP (Y). The Macro Picture. In this picture,. Price level is on the vertical axis Real GDP is on the horizontal axis Y F is full employment or full GDP.

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Example: Perm increase in G, with fed policy intervention (keep P @ Po)

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Ad moves - PowerPoint PPT Presentation

12.0 The Basic Macro Model

Example: Perm increase in G, with fed policy intervention (keep P @ Po)