3.1 - 3.7 AP Macro Review Game

Front

The long run aggregate supply curve is vertical because...

Back

Price level increases but GDP doesn't

Front

The long run aggregate supply curve is also known as

Back

Full-employment

Front

If the price of imported Canadian lumber increases, the effect on the U.S. economy will be:

Back

AS shifts left (decrease)

Front

Changes in price level

Back

Move along the AD curve

Front

Assume the economy is in long run equilibrium and the government increases spending on healthcare. What will happen?

Back

AD will shift right and an inflationary gap will result.

Front

Assume the economy is in long run equilibrium and trading partners increase the price of oil, a key resource. What will happen?

Back

AS will shift left and a recessionary gap will result.

Front

The LRAS is vertical because

Back

In the long run there is no tradeoff between inflation and unemployment

Front

The unemployment rate at LRAS is also known as

Back

The natural rate of unemployment

Front

The multiplier effect shows

Back

How spending is magnified in the economy

Front

How will a large decrease in Canadian incomes affect the United States price level and real GDP?

Back

Price level: DECREASE, Real GDP: DECREASE