AP MACROECONOMICS EXAM PREP UPDATED QUESTIONS AND ACCURATE ANSWERS FULL STUDY MATERIAL

AP MACROECONOMICS EXAM PREP
UPDATED QUESTIONS AND ACCURATE
ANSWERS FULL STUDY MATERIAL

●● Shift of Short-Run Phillips Curve
Answer: Shift in SRAS (shift is in opposite direction)


●● Shift of Long-Run Phillips Curve
Answer: Factors of Production/Shift in LRAS (shift is in opposite
direction)


●● Factors of Production
Answer: 1. Land
2. Labor
3. Capital
4. Technology
5. Sometimes Foreign Trade


●● 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


●● 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:


●● Demand and Supply Graph
Answer:


●● Business Cycle
Answer:


●● Short Run AD/AS Graph
Answer:


●● Money Market Graph
Answer:


●● Loanable Funds Graph
Answer:

, ●● Investment Demand Graph
Answer:


●● Foreign Exchange Graph
Answer:


●● Phillips Curve
Answer:


●● GDP = C + I + G + Xn
Answer: The expenditure approach to measuring GD 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