AP Macroeconomics AD and AS

Which does not belong?

• Net exports

• consumer spending

• government spending

• input prices

To increase Aggregate Supply we shift the AS curve to the

• right

• left

• other right

• left over

If the government increases taxes on consumers, AD will?

• decrease

• increase

• remain unchanged

• stays the same

Which is not part of the Legal Institutional Environment as it applies to our AS determinants?

• taxes

• subsidies

• regulations

• government spending

Which is NOT a determinant of consumer spending

• consumer debt

• personal income tax cuts / increases

• consumer wealth

• appreciation/depreciation of the dollar

An increase in government spending will lead to?

• increase in AD

• increase in AS

• decrease in AD

• decrease in AS

If the government raises taxes on businesses, AS will?

• AS increases

• AS decreases

• AD decreases

What if the government offers subsidies to companies to produce more?

• AS increases

• AS decreases

• AD increases

• AD decreases

If the government REDUCES taxes on CONSUMERS what will happen?

• AS will decrease

• AS will increase

• AD will decrease

• AD will increase

If exports INCREASE and imports stay the same, what happens?

• AD will increase

• AD will decrease

• AS will increase

• AS will decrease