AP Macro Graph Practice II: Phillips Curve and AS/AD

A movement from A to B would represent

• an increase in AS in the AS/AD model.

• a decrease in AS in the AS/AD model.

• stagflation.

• an increase in AD in the AS/AD model.

• a decrease in AD in the AS/AD model.

A movement from B to A on the curve would represent

• an increase in AS in the AS/AD model.

• a decrease in AS in the AS/AD model.

• stagflation.

• an increase in AD in the AS/AD model.

• a decrease in AD in the AS/AD model.

A decrease in AD would cause a(n)

• downward movement on the Phillips Curve.

• upwards movement on the Phillips Curve.

• a rightward shift of the Phillips Curve.

• a leftward shift of the Phillips Curve.

• stagflation.

An increase in AD would cause a(n)

• downward movement on the Phillips Curve.

• upwards movement on the Phillips Curve.

• a rightward shift of the Phillips Curve.

• a leftward shift of the Phillips Curve.

• stagflation.

A movement from A to B could be caused by

• an increase in the Supply of Money

• a decrease in the discount rate.

• an increase in government spending.

• a decrease in taxes.

• an increase in the Federal Funds rate.

A movement from A to B could be caused by

• an increase in the Supply of Money

• a decrease in the discount rate.

• an increase in government spending.

• an increase in taxes.

• a decrease in the Federal Funds rate.

The movement from A to B to C is best described by

• Okun's law.

• the natural rate hypothesis.

• Say's law.

• the crowding out effect.

• the Phillips effect.

The movement from B to C would be reflected on the AS/AD model as

• a decreasing shift of AD from an inflationary gap to full employment.

• an increasing shift of AS from an inflationary gap to full employment.

• a decreasing shift of AS from an inflationary gap to full employment.

• an increasing shift of AD from a recessionary gap to full employment.

• a decreasing shift of AS from a recessionary gap to full employment.

The movements on each graph could be caused by

• a major technological innovation.

• a decrease in the reserve requirement.

• an increase in government spending.

• a decrease in taxes.

• an increase in the cost of a major resource such as oil.

The movements on each graph could be caused by

• a decrease in wages.

• an increase in the discount rate.

• an increase in government spending.

• a decrease in taxes.

• a major loss of innovation or ideas such as the burning of the library at Alexandria.