stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Macroeconomics Review Spectacular Flashcards | StudBud
Explore
/
Macroeconomics Review Spectacular
Macroeconomics Review Spectacular
35 terms
·
StudBud Administration
·
1,283 plays
AP Macroeconomics Review Question
Flashcards
35 cards
F
Practice quiz
P
Host live
L
Questions
35
Answers
1
Deflation is
A decline in the overall price level
A decrease in the rate of inflation
An increase in the rate of inflation
An increase in the overall price level
2
Which of the following do economists generally consider the least desirable?
Modest disinflation
Significant deflation
Modest inflation
Significant inflation
3
The demand for cookies will increase if
The price of cookies decreases
The population increases
The price of milk, a complement, increases
The prices of crackers, a substitute, decreases
4
Which of the following would cause an increase in the demand for US dollars?
Interest rates in the US are low relative to other countries
Trading partners raise tariffs on US made products
The inflation rate in US is low relative to other countries
The US raises tariffs on imported products
5
Which of the following would be the best definition of the study of economics
Economics is the study of how society deals with scarcity
Economics is the study of labor decisions
Economics is the study of how to profit from the stocks
Economics is the study of how to make money
6
The ___________ market is where currencies from different nations are traded.
Real Estate
Bond
Stock
Foreign Exchange
7
The primary role of the Federal Open Market Committee is to
Conduct monetary policy
Print currency
Respond to the requests of the legislative branch
Oversee bank regulation
8
A nation's GDP can be determined by which simple formula?
GDP = C - I + G + (M - X)
GDP = S + I
GDP = C + I + G + (X - M)
GDP = C + I + G
9
What would cause movement along the short run phillips curve?
Aggregate demand suddenly increased.
Short run aggregate supply decreased
Long run aggregate supply increased
Short run aggregate supply increased
10
Which of the following could cause inflation in the short run?
Increase in the price of an energy source like natural gas
An increase in the amount of imports
A decrease in consumer incomes
A decrease in the wage rate
11
If the market supply of houses increases, we expect
Fewer houses sold at higher prices
More houses sold at lower prices
More houses sold and no change in prices
Fewer houses sold at lower prices
12
Which of the following would be considered fiat money?
Metal coins
Silver
Cigarettes in prisoner of war camps
Gold
13
In the U.S., inflation is most often measured by changes in the
GDP Deflator
Consumer Price Index
Producer Price Index
Exchange Rate
14
Stagflation would cause which change?
A rightward shift of the SRPC
A leftward rotation of the SRPC
A leftward shift of the SRPC
A rightward shift of the LRPC
15
The sum of all wages, interest, rent, and profit is called
The budget balance
Net exports
National Savings
National income
16
Which of the following will shift the aggregate demand curve to the left:
Government spending rises
Consumer spending rises
Investment spending rises
Export spending falls
17
As the business cycle is rising, the economy is experiencing
An expansion
A recession
A depression
The trough
18
When unemployed workers are seeking positions that are a better for their skills; it is called
Frictional
Seasonal
Cyclical
Structural
19
Which of the following is both a financial asset and the least liquid?
Cash
Loans
Bank deposits
Bonds
20
What is the largest component of aggregate demand?
Consumption spending
Export spending
Government spending
Investment spending
21
Which of the following policies would be likely to lead to economic growth?
A tax on basic health care
A tax on higher education
A tax on nondurable consumption goods
A tax on capital expenditures
22
When government imposes a restriction on the quantity that can be produced in a market, it is
Excise tax
Price floor
quota
Price ceiling
23
The idea of ____________ in economics is that we have unlimited wants but limited resources
normative economics
marginal analysis
scarcity
opportunity costs
24
When workers lose their jobs because there is no longer a demand for that particular skillset
Structural
Cyclical
Seasonal
Frictional
25
Which of the following would cause a nation's potential real GDP to decrease?
An increase in labor productivity
An increase in nominal wages
A decrease in high school graduation rates
A decrease in energy prices
26
All else equal, which of the following would not lead to economic growth?
An improvement in technology
An increase in the stock of machinery
An increase in the skills of workers
An increase in consumption
27
Which of the following is considered a determinant of supply curves?
Consumer income
Taste and preferences
Number of suppliers
Consumer income expectations
28
The natural rate of unemployment is the level of unemployment
Where structural unemployment is zero
At the trough of a recession
when cyclical unemployment is zero
where frictional unemployment is zero
29
What would cause a shift in the short run phillips curve?
An increase in the price of factors production
An increase in investment spending
A decrease in expectations of inflation
A decrease in the price of energy
30
Which part of aggregate demand is monetary policy primarily intended to target?
Consumption
Government Spending
Imports
Investment
31
Economic Growth is
the natural result of the end of a recession
achieved when unemployment is zero
the long run increase in national output
the same as an expansion in the business cycle
32
A country that pursues a contractionary monetary policy will most likely experience
A decreaes in domestic interest rates
An increase in the demand for its currency in forex mkts
An increase in the level of investment spending
An increase in the supply of its currency in forex mkts
33
Monetary policy is the use of _____ to affect macroeconomic variables.
Taxes
Government spending
The Labor Market
The Money Supply
34
What model shows the flows of money, factors of production, and goods & services in an economy?
The circular flow model
Aggregate Demand and Aggregate Supply model
Production Possibilities Curve model
Phillips curve model
35
The labor force is best defined as
Total # of employed persons
Total # of employed persons plus total # of unemployed
Total # of unemployed persons
Ration of employed persons to unemployed persons
