AP Macroeconomics Final Exam (Latest
Update ) Questions & Answers
100% Correct - (Grade A)
What is the most fundamental issue that economics addresses? - correct answer Use
of scarce resources
Inflation occurs when there is a sustained increase in - correct answer average price
level
An increase in spending in an economy will cause a multiplied increase in GDP
because - correct answer consumption increases as income increases
A contraction in the money supply will most likely change the nominal interest rate
and aggregate demand in what way in the short run? - correct answer Nominal
Interest Rate- Increase, Aggregate Demand- Decrease
If the economy is in a severe recession, what policy action is most appropriate? -
correct answer Increasing both the money supply and government spending
The most liquid asset is - correct answer currency
, If nominal interest rate is 8% and the expected inflation is 3%, the real interest rate is -
correct answer 5%
An increase in the international value of the US dollar will most likely benefit - correct
answer retired US citizens living overseas on their social security checks
What would cause the short-run aggregate supply curve (SRAS) to shift to the right? -
correct answer Decrease in expected price level
What is likely to occur following the depreciation of the US dollar? - correct answer US
exports will increase
Supply/Demand Graph - correct answer X- Quantity, Y- Price (Supply- upward slope,
Demand- downward slope)
Supply Curve Shifters - correct answer input prices(resources), prices of related
goods or services, technology, expectations, number of producers
Demand Curve Shifters - correct answer prices of related goods or services, income,
tastes, expectations, number of consumers
Update ) Questions & Answers
100% Correct - (Grade A)
What is the most fundamental issue that economics addresses? - correct answer Use
of scarce resources
Inflation occurs when there is a sustained increase in - correct answer average price
level
An increase in spending in an economy will cause a multiplied increase in GDP
because - correct answer consumption increases as income increases
A contraction in the money supply will most likely change the nominal interest rate
and aggregate demand in what way in the short run? - correct answer Nominal
Interest Rate- Increase, Aggregate Demand- Decrease
If the economy is in a severe recession, what policy action is most appropriate? -
correct answer Increasing both the money supply and government spending
The most liquid asset is - correct answer currency
, If nominal interest rate is 8% and the expected inflation is 3%, the real interest rate is -
correct answer 5%
An increase in the international value of the US dollar will most likely benefit - correct
answer retired US citizens living overseas on their social security checks
What would cause the short-run aggregate supply curve (SRAS) to shift to the right? -
correct answer Decrease in expected price level
What is likely to occur following the depreciation of the US dollar? - correct answer US
exports will increase
Supply/Demand Graph - correct answer X- Quantity, Y- Price (Supply- upward slope,
Demand- downward slope)
Supply Curve Shifters - correct answer input prices(resources), prices of related
goods or services, technology, expectations, number of producers
Demand Curve Shifters - correct answer prices of related goods or services, income,
tastes, expectations, number of consumers
