Unit 3 AP Macro Review

Positive supply shock will

(two) represented here--pick one

In terms of AS ,period-- nominal wages & other resource prices are fully responsive to PL

In the long run

An increase in short run AS

stagflation caused by (2 possible, pick 1)

government increases taxes

which of the following will NOT affect AD?

improved technoloy

Demand pull inflation

in the long run, equilibrium will

a decrease in Japanese income

An increase in --- will lead to a lower PL/lower inflation, and lower unemployment

Which of the following is represented by the graph?

Which of the following would NOT be a cause of shift from AD1 to AD2?

--- can be found by adding Consumption, Investment spedning, Govt spending, & net exports

In the long run,

new oil discoveries cause large decreases in energy prices

Which of the following is represented here?

decrease in business taxes

In terms of AS, a period in which nominal wages & other resource prices are fixed:

increase in --- will increase AD

LRAS is vertical at the

In the long run, if AD decreases

Which of the following could cause the shift represented?

A country's NRU is 6% but it is operating at 5%