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Macro by Mark
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OverviewThe flagship learning arc.ConceptsCore measures, terms, and mechanisms.PolicyFiscal, monetary, and transmission routes.
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ModelsEmpirical, structural, and theoretical routes.GlossaryFast definitions while you learn.
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Theory-Based Models

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Macro by Mark

U.S. macro data with release timing, boards, and macro context.

Public U.S. data from agencies and market feeds.

MarkJayson.com

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© 2026 Mark Jayson Martinez Farol

Theory-Based Models

AD-AS Model

A short-run demand and supply framework showing how price level and output move when demand or cost conditions shift around long-run capacity.

Introductoryshift equilibrium
OverviewExploreCompare
CatalogDerivations

Theory-Based Models

Overview

Route section

A compact aggregate-demand and aggregate-supply view for separating demand shocks, cost shocks, and long-run capacity.

Core question

What happens to output and prices when demand or supply shifts around capacity?

Start with this visual summary, then move to explore for parameter control and compare for side-by-side scenarios.

ExploreCompareDerivations

Variables

YYY

Output

Aggregate real output.

PPP

Price level

Aggregate price level.

LRASLRASLRAS

Long-run aggregate supply

Capacity or potential output.

Visual readout

Output

93.0

Price level

90.6

Long-run gap

0.0

Potential output

93.0

Keep this panel as the fast first pass. Use explore for calibration workflow and compare for alternate scenarios.

Assumptions

Short-run supply responds gradually, not infinitely fast.

That gives the diagram its upward-sloping SRAS schedule.

Potential output anchors the long run.

The long-run benchmark is capacity, not the current demand position.

Parameters

AD0AD_0AD0​

AD intercept

Aggregate demand

Demand strength at a zero price level.

AD1AD_1AD1​

AD slope

Aggregate demand

How quickly demand falls as prices rise.

AS0AS_0AS0​

SRAS intercept

Short-run supply

Baseline cost pressure at zero output.

AS1AS_1AS1​

SRAS slope

Short-run supply

How quickly marginal costs rise as output expands.

Y∗Y^*Y∗

Potential output

Long run

Long-run capacity or sustainable output.

Shock presets

Demand boost

Shifts AD outward.

Cost push

Raises the SRAS intercept and worsens the tradeoff.

Capacity gain

Raises potential output.

Introductory

AD-AS

What happens to output and prices when demand or supply shifts around capacity?

goods marketinflationpolicy
OverviewExploreCompareDerivations