AP Macroeconomics-Module 14 and 15 Exam Questions and Answers

AP Macroeconomics-Module 14 and 15
Exam Questions and Answers

real iiwage ii- iiAnswers ii-The iiwage iirate iidivided iiby iithe iiprice iilevel

real iiincome ii- iiAnswers ii-Income iidivided iiby iithe iiprice iilevel

inflation iirate ii- iiAnswers ii-The iiannual iipercent iichange iiin iia iiprice iiindex--typically iithe
iiconsumer iiprice iiindex. iiThe iiinflation iirate iiis iipositive iiwhen iithe iiaggregate iiprice iilevel
iiis iirising ii(inflation) iiand iinegative iiwhen iithe iiaggregate iiprice iilevel iiis iifalling
ii(deflation).


shoe-leather iicosts ii- iiAnswers ii-(of iiinflation) iiThe iiincreased iicosts iiof iitransactions
iicaused iiby iiinflation


menu iicosts ii- iiAnswers ii-The iireal iicost iiof iichanging iia iilisted iiprice

unit-of-account iicosts ii- iiAnswers ii-(of iiinflation) iiCosts iiarising iifrom iithe iiway iiinflation
iimakes iimoney iia iiless iireliable iiunit iiof iimeasurement


nominal iiinterest iirate ii- iiAnswers ii-The iiinterest iirate iiactually iipaid iifor iia iiloan, iinot
iiadjusted iifor iiinflation


real iiinterest iirate ii- iiAnswers ii-The iinominal iiinterest iirate iiminus iithe iiinflation iirate

disinflation ii- iiAnswers ii-The iiprocess iiof iibringing iidown iiinflation iithat iihas iibecome
iiembedded iiin iiexpectations


aggregate iiprice iilevel ii- iiAnswers ii-A iimeasure iiof iithe iioverall iilevel iiof iiprices iiin iithe
iieconomy


market iibasket ii- iiAnswers ii-A iihypothetical iiconsumption iibundle iiof iiconsumer
iipurchases iiof iigoods iiand iiservices, iiused iito iimeasure iichanges iiin iioverall iiprice iilevel


price iiindex ii- iiAnswers ii-A iimeasure iiof iithe iicost iiof iipurchasing iia iigiven iimarket
iibasket iigood iiin iia iigiven iiyear, iiwhere iithat iicost iiis iinormalized iiso iithat iiit iiis iiequal iito
ii100 iiin iithe iiselected iibase iiyear; iia iimeasure iiof iioverall iiprice iilevel