AP Macro Exam Review Quiz

What does Jacob Clifford encourage students to do after the AP test?

• Send him something in the mail for a shoutout

• Take a break and relax

• Start preparing for the next exam

• Ignore economics until the next school year

In the first free response question, what was the real GDP compared to the Full Employment GDP?

• Real GDP was higher than Full Employment GDP

• Real GDP was lower than Full Employment GDP

• Real GDP was equal to Full Employment GDP

• Real GDP was not mentioned

What is the spending multiplier if the marginal propensity to save is 0.2?

• 5

• 4

• 6

• 7

In the second free response question, what happens to the flow of international financial capital when interest rates increase?

• It fluctuates unpredictably

• It increases

• It remains unchanged

• It decreases

What monetary policy action is suggested to reduce inflation in the second free response question?

• Lower administered rates

• Sell government bonds

• Increase interest on reserves

• Decrease interest on reserves

In the third free response question, what was the labor force participation rate given?

• 60%

• 75%

• 65%

• 70%

How many people were unemployed according to the third free response question?

• 80,000

• 70,000

• 63,000

• 50,000

What type of economic gap is present when the unemployment rate is higher than the natural rate?

• Recessionary gap

• Positive output gap

• No output gap

• Inflationary gap

What happens to the labor force participation rate if unemployed people leave the labor force?

• It fluctuates

• It remains the same

• It decreases

• It increases

What sentiment does Jacob Clifford express towards the end of the video?

• Indifference

• Encouragement

• Criticism

• Disappointment