NEW
Font size
S
M
L
XL
WorksheetsAP Macro
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
In a mixed economy, what to produce and how much to produce are determined by
a)
a central planning agency
b)
a private planning agency
c)
large corporations and small entrepreneurs
d)
markets and the government
2.
Federal budget deficits occur when
a)
more money is being spent on entitlement programs than has been allocated
b)
the federal government spends more than it collects in taxes in a given year
c)
high levels of unemployment use up tax collections
d)
interest payments on the national debt increase from one year to the next
3.
An increase in which of the following will increase aggregate demand?
a)
Taxes
b)
Government spending
c)
The federal funds rate
d)
Reserve requirements
4.
When the Federal Reserve buys government securities on the open market, which of the following will decrease in the short run?
a)
Interest rates
b)
Taxes
c)
Investment
d)
The money supply
5.
Which of the following best explains why many United States economists support free international trade?
a)
It is more important to reduce world inflation than to reduce United States unemployment.
b)
Workers are not affected; only businesses suffer.
c)
The long-run gains to consumers and some producers exceed the losses to other producers.
d)
Government can protect United States industries while encouraging free trade.
6.
The long-run growth rate of an economy will be increased by an increase in all the following EXCEPT
a)
capital stock
b)
labor supply
c)
real interest rate
d)
rate of technological change
7.
If the economy is operating at full employment and there is a substantial increase in the money supply, the quantity theory of money predicts an increase in
a)
real output
b)
the price level
c)
interest rates
d)
unemployment
8.
Assume that the reserve requirement is 20 percent, but banks voluntarily keep some excess reserves. A $1 million increase in new reserves will result in
a)
an increase in the money supply of $5 million
b)
an increase in the money supply of less than $5 million
c)
a decrease in the money supply of $5 million
d)
a decrease in the money supply of more than $5 million
9.
An increase in which of the following is consistent with an outward shift in the production possibilities curve?
a)
Aggregate demand
b)
Income tax rates
c)
Long-run aggregate supply
d)
Exports
10.
Assume that the economy is at full-employment equilibrium in the diagram shown. Which of the following would lead to stagflation?
a)
A leftward shift of the short-run aggregate supply curve only
b)
A rightward shift of the short-run aggregate supply curve only
c)
A leftward shift of the short-run aggregate demand curve only
d)
A rightward shift of the short-run aggregate demand curve only
Reset
