AP Macroeconomics Review

Front

When one decision is made, the next best alternative not selected is called

Back

opportunity cost

Front

Workers agree to a 10% wage increase.  Everything else remaining constant, this will cause the _______ curve to shift _____.

Back

supply; left

Front

Which of the following would cause the long-run Phillips curve to shift to the right? A decrease in frictional unemployment, An increase in cyclical unemployment, An increase in structural unemployment, An increase in aggregate demand (AD), A decrease in aggregate demand (AD)

Back

An increase in structural unemployment

Front

Which graph best depicts the Phillips curve model of Te Rehunga based on the AD-AS model?

Back

Front

In the graph of the Phillips curve above, an economy moved from point 1 to point 2 to point 3. Which of the following would be the most likely reason for the movement from point 2 to point 3 shown in this graph? A change in the natural rate of unemployment, An increase in aggregate demand, A decrease in aggregate demand (AD), A decrease in short-run aggregate supply (SRAS), An increase in short-run aggregate supply (SRAS)

Back

A decrease in short-run aggregate supply (SRAS)

Front

Tax Multiplier =

Back

-MPC/MPS

Front

Money or Loan Multiplier =

Back

1/rr

Front

The​ ​Consumer​ ​Price​ ​Index​ ​(CPI)​ ​can​ ​be​ ​defined​ ​as

Back

A​ ​measure​ ​of​ ​inflation​ ​based​ ​on​ ​the​ ​cost​ ​of​ ​a​ ​fixed​ ​“market​ ​basket”

Front

Which of the following people would be considered unemployed? A person who quits work to care for aging parents, A person who stayed home to raise his children and now starts looking for a job, A person who is qualified to teach but is driving a bus until a teaching job is available, A person who works two part-time jobs but is looking for a full-time job

Back

A person who stayed home to raise his children and now starts looking for a job

Front

What impact will an increase in the money supply have on real output in Theopolis, where the velocity of money is 3 and the aggregate supply curve is vertical at $100 million?

Back

There will be no impact on real output.