WorksheetsAP Macro Unit 3
Total questions: 16
Worksheet time: 13mins
The shifters of aggregate supply are
Inflationary expectations
Change in resource prices
Changes in actions of the government
Changes in productivity
The long run aggregate supply curve is vertical because...
Price level increases but GDP doesn't
GDP increases but price level doesn't
GDP decreases but price level doesn't
Price level decreases but GDP doesn't
The long run aggregate supply curve is also known as
The natural rate of unemployment
Full-employment
The natural rate of employment
Cyclical unemployment
If the price of imported Canadian lumber increases
AS shifts left (decrease)
AS shifts right (increase)
AD shifts left (decrease)
AD shifts right (increase)
Changes in price level
Shift the AD curve left (decrease)
Shift the AD curve right (increase)
Move along the AD curve
Shift the AS curve right (increase)
Shift the AS curve left (decrease)
Shifters of aggregate demand include
Change in consumer spending
Change in investment spending
Change in government spending
Change in net exports
Assume the economy is in long run equilibrium and the government increases spending on healthcare
AD will shift right and an inflationary gap will result
AD will shift left and a recessionary gap will result
AS will shift right and an inflationary gap will result
AS will shift left and a recessionary gap will result
No change will result
Assume the economy is in long run equilibrium and trading partners increase the price of oil, a key resource
AD will shift right and an inflationary gap will result
AD will shift left and a recessionary gap will result
AS will shift right and an inflationary gap will result
AS will shift left and a recessionary gap will result
No change will result
Assume that the economy is at long run equilibrium and that the government increases spending. In the short run, AD will increase. In the long run, what will happen?
AD will decrease
AS will decrease
AD will increase
AS will increase
The debate between Classical and Keynesian economics revolves around the price of resources
Easily going up and easily going down
Sticky
Easily going up, but not easily going down
Flexible
The Phillips Curve represents the tradeoff between
Inflation and unemployment
Price and quantity demanded
Price level and GDP
Two production options
The LRPC is vertical because
In the long run there is no tradeoff between inflation and unemployment
In the long run there is no tradeoff between price level and GDP
In the long run there is no tradeoff between price and quantity demanded
In the long run there is no tradeoff between two production options
The LRPC is also known as
The natural rate of unemployment
A recessionary gap
An inflationary gap
The natural rate of employment
Contractionary fiscal policy includes
Decreasing government spending
Tax increases
Tax decreases
Increasing government spending
Expansionary fiscal policy includes
Decreasing government spending
Tax increases
Tax decreases
Increasing government spending
The multiplier effect shows
How spending is magnified in the economy
How much consumers can spend from their paychecks
How much the government can spend from their budget
How often the economy can survive recessions
