# 5 POWER Macro Diagrams For Paper 2!!! 💪🔥

## Метаданные

- **Канал:** EconplusDal
- **YouTube:** https://www.youtube.com/watch?v=ogLWduNVhOg
- **Дата:** 16.05.2026
- **Длительность:** 8:52
- **Просмотры:** 34,932

## Описание

5 Awesome Macro Diagrams For Paper 2!!! 5 Amazing Macro Diagrams For Paper 2!!! These 5 Micro diagrams would add serious power to both analysis and evaluation in Paper 2. Revise them well

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## Содержание

### [0:00](https://www.youtube.com/watch?v=ogLWduNVhOg) Segment 1 (00:00 - 05:00)

Hi everybody, let's do it. Five incredible, insane diagrams that you're very likely going to be using in your macro exams, your macro essays. So, take this all in, illustrate points you're going to be writing in analysis or evaluation with these beautiful diagrams. Watch your marks increase as a result of it. There is another video in my revision for exams playlist where I do the same, go and check that out as well. But, let's dive into it with a stunner to start. Be confident using the Phillips curve. The Phillips curve is amazing, especially to show trade-offs with macro objectives. But, instead of drawing the Phillips curve on its own and isolation, why not tie it with ADAS diagram? So, like here, you've got a very simple AD shift to the left. We know from that lower growth, higher unemployment expected alongside lower demand-pull inflation. Great to show it on an ADAS diagram, but if you can tie that with a Phillips curve diagram alongside it, it shows more confidence. Examiners will be more impressed with you. And all you need to do is take these two equilibria and just simply plot on your short-run Phillips curve like this. So, P1Y1 initial equilibrium, take it across, call that inflation rate I1, call the point on the diagram point A, call that unemployment rate U1. Do the same for point two, equilibrium point two here. Call that inflation rate I2, B on the Phillips curve, unemployment rate U2 with arrows, the increase in unemployment, the fall in inflation, simple as that. We know it's going to be a movement down the short-run Phillips curve. But, instead of drawing that in isolation or this in isolation, draw them both together. Equally, if you're showing SRAS shifts left or right, shift the short-run Phillips curve alongside it. But, also with this movement down here, if you're very comfortable with the long-run Phillips curve, we know that over time inflation expectations will fall, wage expectations will fall, you'll see a shift of short-run Phillips curve back to the long-run natural rate of unemployment or the NAIRU position. If you're comfortable doing that, so impressive for an examiner. Now, of course, you're going to be drawing AS and AD diagrams all over the place in your macro exams. And the reason why we love these diagrams so much, they link to the macro objectives, right? So, take a very simple AD shift to the right. It doesn't matter that I've used the Keynesian model here. If you prefer the classical interpretation, no problem whatsoever. The outcomes will be the same. But yeah, we can link to the macro objectives. So, have a think to yourself. From this AD shift, what's happening with economic growth? Well, it's increasing, right? Y1 to Y2 makes that clear. What's happening to unemployment? Unemployment falling, labor is a derived demand. What's happening to inflation? Inflation rising, it's demand-pull inflation. What's happening to the trade balance? In theory, worsening because of higher growth, higher disposable income, more spending on imports, higher inflation, less competitive exports. Well done if you got all of that right, but push the detail further. If you can say why all of these things occur in detail to back up what the diagram is showing, that will be super impressive to examiners. So, any shift, whether it's AD, SRAS, LRAS, you're making links to the macro objectives. Write in detail why there is a change. There is a video in my year one macro playlist where I do this perfectly for you. Get that detail, tie it to this diagram, you have the perfect complement, everything you need to impress examiners with the diagram and the links here. But also know that in this case, whenever you're shifting AD right or left, you can exaggerate the impacts on the macro objectives by using the multiplier effect. So, here, it's going to be a positive multiplier, finishing maybe not to AD2, but you can draw on your diagram maybe here at AD3. And show that the end result could be even higher GDP growth to Y3, but a risk of higher inflation at P3. So, anytime you're shifting AD right, positive multiplier could well occur, or even AD left, negative multiplier. Look to bring that in, exaggerate the benefits or the concerns. And now to the Laffer curve, such an amazing way to evaluate the impact of direct tax changes, whether it's tax rises or tax cuts on government revenue. This curve is great to illustrate the point that you're going to be making in evaluation, whether it's disincentive effects of tax rises or incentive effects of tax cuts. But on the diagram, be comfortable manipulating tax rates, changing tax rates, and actually showing the impact on tax revenue collected. So, here a tax rise showing a fall in tax revenue collected. You can go the opposite way as well, right? A cut in tax then increasing tax revenue for the government. So, show the changes on the diagram alongside all the theory that you know will be so impressive when you're evaluating using this diagram right here. Beautiful stuff. And now to a heavyweight diagram when it comes to international trade, I

### [5:00](https://www.youtube.com/watch?v=ogLWduNVhOg&t=300s) Segment 2 (05:00 - 08:00)

am sure you're going to be using this diagram in your macro exams, of course. It's the beautiful, the wonderful tariff diagram. Just look how great it looks. Look how much of a stunner it is. It's a beautiful looking diagram, isn't it? You can't take your eyes off it, but it's a powerful diagram. You can use it to illustrate, to back up your reasons for protectionism. It shows the infant industry argument, Q1 to Q3. It shows protection against dumping, PW to PW plus T. It shows protection against unemployment, Q1 to Q3. It shows gains in government revenue, area H. We're going to talk about that more in a second. It shows current account deficit reduction or trade deficit reduction with the squeeze of imports, Q3 to Q4. But you can also use this diagram to illustrate your evaluation points, your concerns of using protectionist measures like a tariff, the fact that prices go up, the regressive impact of that, the fact that quantity squeezed to Q4, the fact that allocative inefficiency can result through distortion of comparative advantage, all illustrated on this diagram. But, also, you might have to show a tariff increase or a tariff cut, a tariff decrease using this as your base starting point. That should be no problem. But, guys, guys, seriously, if you can do this, dissect this diagram into even more detail with these areas, this is the way to impress examiners more so. show that you are a don of economics. Using these areas to further back up your reasons for protectionism or your arguments against protectionism will be such a wow factor for an examiner. The examiner will think, "My god, mate, you need to switch places with me. You can be the examiner, you know your economics that well. " So, yeah, using these areas to show changes in domestic producer revenue or foreign producer revenue, to show the government revenue area H, to show losses in consumer surplus, that trapezium there, or gains in producer surplus, deadweight losses, whatever is, make sure you can do all of that to then back up all your arguments. My god, you will be so, so damn good doing that. The examiner will love you for it. That's why we're here, right? And lastly, the J-curve diagram. We know how great the Marshall-Lerner condition is when it comes to evaluating whether a weak exchange rate will be beneficial for an economy or not. But, you can actually illustrate using the J-curve what's likely to happen in both the immediate aftermath post a currency weakening, and also over time, how in the short run the Marshall-Lerner condition tends not to hold, and therefore a country's current account balance is likely to worsen. We see that in stage one, but however time the Marshall Lerner condition is more likely to hold. That's where you see the improvement in the current account balance, giving a relationship that looks like a J. So, it's called the J curve. But when you're drawing this, break it into two parts. Stage one, stage two, where the Marshall Lerner condition is not holding initially. You can then say why, back it up with the J curve in stage one, and how in stage two it's likely to hold over time. Again, you say why. You link it to the relationship improving, the current account balance improving. So, drawing it like this and tying it to the Marshall Lerner condition, breaking this curve into two parts, will be very impressive. Confidence with evaluation there. So, there you have it, guys. Some amazing diagrams you're very likely to use in your macro exams. So, make sure you're taking this in, be comfortable drawing these, draw them really accurately, refer to them in your writing, watch your marks increase as a result of it. Plenty more videos to come, including those already in my revision for exams playlist. Make sure you're watching them all. I can't wait to see you in upcoming videos. —

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*Источник: https://ekstraktznaniy.ru/video/51457*