AP MACROECONOMICS COMPREHENSIVE
TEST BANK QUESTIONS AND VERIFIED
ANSWERS REVIEW PACKAGE
●● Shift of Short-Run Phillips Curve
Answer: Shift in SRAS (shift is in opposite direction)
●● Factors of Production
Answer: 1. Land
2. Labor
3. Capital
4. Technology
●● Shifters of Demand for Loanable Funds
Answer: 1. Incentive to Invest
2. Contractionary Fiscal Policy (to the right)
●● Shifters of Supply of Loanable Funds
Answer: 1. Incentive to Save
2. Monetary Policy
3. Expansionary Fiscal Policy (to the left)
,●● Shifters of Money Supply
Answer: Monetary Policy
Federal Reserve Bank
●● Shifters of Money Demand
Answer: 1. Price Level
2. Income
3. Fiscal Policy
●● Shifters of Long-Run Aggregate Supply
Answer: Factors of Production
●● Shifters of Short-Run Aggregate Supply
Answer: 1. Factors of Production (LRAS)
2. Input Costs
3. Supply Shock
●● Shifters of Aggregate Demand
Answer: 1. GDP (or its components)
2. Monetary Policy
3. Fiscal Policy
,●● PPC Graph
Answer: Illustrates the production possibilities of 2 products based on
amount of resources available
●● Demand and Supply Graph
Answer:
●● Business Cycle
Answer:
●● AD/AS Graph
Answer:
●● Money Market Graph
Answer:
●● Loanable Funds Graph
Answer:
●● GDP = C + I + G + Xn
Answer: The expenditure approach to measuring GDP correlates well
with aggregate demand (AD)
, ●● GDP = W + I + R + P
Answer: The income approach to measuring GDP correlates well with
aggregate supply
●● Calculating Nominal GDP
Answer: The quantity of various goods produced in a nation times their
current prices, added together.
●● GDP Deflator
Answer: Price index used to measure inflation
●● Inflation Rate via the CPI
Answer: (This year's CPI - Last year's CPI)/(Last year's CPI) x 100.
The inflation rate is the percentage change in the CPI from one period to
the next.
●● Real Interest Rate
Answer: the interest rate corrected for the effects of inflation;
●● Unemployment Rate
Answer: 16 or older, actively seeking employment.
TEST BANK QUESTIONS AND VERIFIED
ANSWERS REVIEW PACKAGE
●● Shift of Short-Run Phillips Curve
Answer: Shift in SRAS (shift is in opposite direction)
●● Factors of Production
Answer: 1. Land
2. Labor
3. Capital
4. Technology
●● Shifters of Demand for Loanable Funds
Answer: 1. Incentive to Invest
2. Contractionary Fiscal Policy (to the right)
●● Shifters of Supply of Loanable Funds
Answer: 1. Incentive to Save
2. Monetary Policy
3. Expansionary Fiscal Policy (to the left)
,●● Shifters of Money Supply
Answer: Monetary Policy
Federal Reserve Bank
●● Shifters of Money Demand
Answer: 1. Price Level
2. Income
3. Fiscal Policy
●● Shifters of Long-Run Aggregate Supply
Answer: Factors of Production
●● Shifters of Short-Run Aggregate Supply
Answer: 1. Factors of Production (LRAS)
2. Input Costs
3. Supply Shock
●● Shifters of Aggregate Demand
Answer: 1. GDP (or its components)
2. Monetary Policy
3. Fiscal Policy
,●● PPC Graph
Answer: Illustrates the production possibilities of 2 products based on
amount of resources available
●● Demand and Supply Graph
Answer:
●● Business Cycle
Answer:
●● AD/AS Graph
Answer:
●● Money Market Graph
Answer:
●● Loanable Funds Graph
Answer:
●● GDP = C + I + G + Xn
Answer: The expenditure approach to measuring GDP correlates well
with aggregate demand (AD)
, ●● GDP = W + I + R + P
Answer: The income approach to measuring GDP correlates well with
aggregate supply
●● Calculating Nominal GDP
Answer: The quantity of various goods produced in a nation times their
current prices, added together.
●● GDP Deflator
Answer: Price index used to measure inflation
●● Inflation Rate via the CPI
Answer: (This year's CPI - Last year's CPI)/(Last year's CPI) x 100.
The inflation rate is the percentage change in the CPI from one period to
the next.
●● Real Interest Rate
Answer: the interest rate corrected for the effects of inflation;
●● Unemployment Rate
Answer: 16 or older, actively seeking employment.
