AP Macro- Unit 5

Front

Which of the following is true regarding the short-run Phillips curve (SRPC)? A rightward shift in aggregate demand will cause the SRPC to shift leftward, The SRPC is upward sloping showing the positive relationship between price and output, The SRPC shows the inverse relationship between interest rates and unemployment, The SRPC is vertical when the economy has no cyclical unemployment, The SRPC shows the inverse relationship between inflation and unemployment

Back

The SRPC shows the inverse relationship between inflation and unemployment.

Front

According to the long-run Phillips curve, which of the following is true? Unemployment increases with an increase in inflation. Unemployment decreases with an increase in inflation. Increased automation leads to lower levels of frictional unemployment in the long run. Changes in the composition of the overall labor force tend to be deflationary in the long run. The natural rate of unemployment is independent of inflation.

Back

The natural rate of unemployment is independent of inflation

Front

The quantity theory of money suggests that

Back

An increase in the amount of money will lead to a proportional increase in prices

Front

The velocity of money is best described as:

Back

The number of times the average dollar is spent in a year

Front

When government spending causes an increase in real interest rates, gross private domestic investment

Back

Will experience crowding-out

Front

A decrease in government spending by a given amount accompanied by a decrease in taxes by the same amount will cause which of the following? Aggregate demand to increase, Aggregate demand to decrease, Aggregate demand to stay the same, Aggregate supply to increase, Aggregate supply to decrease

Back

Aggregate demand to decrease

Front

Which of the following is true regarding budget deficits? The national debt is the accumulation of budget deficits and surpluses over time , Budget deficits occur when tax revenues are greater than government expenditures , Budget deficits are often greater than the national debt, Large budget surpluses can cause the crowding-out effect , Budget deficits occur when imports are more than exports

Back

The national debt is the accumulation of budget deficits and surpluses over time

Front

Which of the following will most likely result in economic growth? Increased wages, Decreased savings, Increased business taxes, Increased labor productivity, Decreased unemployment

Back

Increased labor productivity

Front

A change in AD will causes what change on the SRPC?

Back

movement on initial curve

Front

The LRPC is a vertical line at full employment.

Back

true