AP Macroeconomics Unit 3 Study Guide
Questions And Answers
in which of the following ways in the short run? AD: Decrease. AS: No Change
An increase in consumer spending will most likely cause the price level and real GDP to change
in which of the following ways in the short-run? PL: Increase/GDP: Increase
A simultaneous increase in inflation and unemployment could be explained by an increase in...?
Inflationary Expectation
When firms restructure their operations to decrease production costs, the aggregate supply curve,
the price level, and the real output will change in what way? AS: Shift to right: PL
Decrease. Output: Increase
What is true about the marginal propensity to consume It determines the size of the simple
spending multiplier
In a closed economy with only lump-sum taxation, if the marginal propensity to consume is
equal to .75, a $70 billion increase in government spending could cause a maximum increase in
output of... $280 billion
Questions And Answers
in which of the following ways in the short run? AD: Decrease. AS: No Change
An increase in consumer spending will most likely cause the price level and real GDP to change
in which of the following ways in the short-run? PL: Increase/GDP: Increase
A simultaneous increase in inflation and unemployment could be explained by an increase in...?
Inflationary Expectation
When firms restructure their operations to decrease production costs, the aggregate supply curve,
the price level, and the real output will change in what way? AS: Shift to right: PL
Decrease. Output: Increase
What is true about the marginal propensity to consume It determines the size of the simple
spending multiplier
In a closed economy with only lump-sum taxation, if the marginal propensity to consume is
equal to .75, a $70 billion increase in government spending could cause a maximum increase in
output of... $280 billion
