AP Macroeconomics Review - Unit 3 - Shroyer

Front

Changes in the price level of consumer goods results in...

Back

A move along the AD curve

Front

In the short run if the price of imported Brazilian lumber used in buildings increases...

Back

AS shifts left

Front

What does the multiplier effect exemplify?

Back

How spending is magnified in the economy

Front

Budget deficits occur when...

Back

The government is spending more than it collects in taxes in a fiscal year

Front

The LRPC is vertical because

Back

There is no tradeoff between inflation and unemployment

Front

The Phillips Curve shows the tradeoff between

Back

Inflation and unemployment

Front

If unemployment rate is increasing and GDP is decreasing, the fiscal policy that could be implemented that would be best would be...

Back

increasing spending

Front

If an economy experiences a sudden increase in prices, which fiscal policy action should be taken?

Back

Increasing taxes

Front

Which is an example of expansionary fiscal policy? Options: cutting taxes, decreasing government spending, reducing production of consumer and capital goods, decreasing the prices of consumer goods

Back

cutting taxes

Front

What would be the effect of an increase in imports?

Back

a decreased level of AD