AP Econ Final #1

Cutting taxes and increasing government spending

Which of the following can lead to economic growth?

How does an inflationary gap fix itself?

An increase in the money supply decreases

Deposit is $1 million. RR=10%. How much are the required reserves?

In output problems, comparative advantage is always

The ratio of unemployed people to the nation's labor force

Expansionary fiscal policy will have what impact on interest rates and RGDP?

If the CPI increases from 100 to 120, then the inflation rate is

Which would increase AS?

Negative aggregate supply shocks have what impact on the Phillips curve

Traditional Phillips curve

Banks expand the money supply when

What imact does contractionary monetary policy have on the value of the dollar?

An increase in US demand for Japanese goods will

The price of one currency is terms of another currency

The financial support for money in the US

RR=20%. What is the value of the money multiplier?

Nation X can produce 50 shirts per day. Nation Y can produce 30 shirts per day. Who has the absolute advantage?

If the government wants to increase output, it should reduce

What impact does contractionary monetary policy have on trade?

A leftward shift of the short-run aggregate supply curve

LRAS

If interest rates rise, then bond prices

The Fed can increase aggregate demand by

Producing more of Good C means producing less of Good B

If the MPC=0.75 and government spending increases by $10 billion then

The current account deficit is offset by a(n)

If the government subsidizes the development of business technology,

Expansionary monetary policy has what impact on the value of the dollar

Which of these is part of expansionary monetary policy?

The long run Phillips curve shows

Aggregate demand curve

The dollar price of the euro increases. What does this mean about the Euro's value?

If MPC=.75, then the spending multiplier is

In the short run, wages

Expansionary monetary policy

Value of the US dollar decreases

Specialization and international trade have what impact on a PPC?

The main purpose of the Fed

Why would the Fed lower the discount rate?

The Fed can increase aggregate demand by

If the price of natural resources rise,

Fiscal policy tools

A nation should produce the product with the lowest opportunity cost

If expansionary monetary policy causes the dollar to depreciate, then

Basic proposition of supply-side

Which of the following may crowd out private investment?