AP Econ. Flashcards

1

Which is one of the Multiplier Formulas?

MPS=ΔC/ΔDI
MPC=ΔS/ΔDI
MPC=ΔC/ΔDI
MPS=ΔB/ΔSI

2

What does price level measure?

overall prices for set of goods and services
inflation
Demand
Supply

3

How do you calculate spending multiplier?

1/MPS
MPC/1
MPS/1
1/MPA

4

What happens in the long-run aggregate supply?

wages and resource prices increase as price level increases
wages increase as price level decrease
wages decrease as price level increases

5

If there is an increase in demand the curve shifts to the...

right
left

6

What is AD made up of?

net exports
households. exports, government
the multiplier
spending by households, businesses, the government/countries

7

a point outside the curve is...

surplus
efficient production level
Inefficient production level
unattainable production level

8

What is the output method?

differences in opportunity costs
gives data on amount of output that is produces .
measure increases in quantity of goods and services produced
economy declines and unemployment rate rises.

9

What is the Interest-Rate Effect?

price level stays the same, interest rates go down
price levels goes down, interest rates go up
price level goes up, lenders charge higher interest rates
price goes up, interest rates stay the same

10

GDP=C+T+G+Xn

True
False

11

Which is a shifter of supply?

Future Expectations
Tastes and Preferences
Government Action
Number of Consumers

12

Aggregate demand shows the relationship between real GDP and price level in the economy...

False
True

13

If price levels decrease, what happens to real GDP?

Stays the same
Increases
Shifts to the right
Decreases

14

What can shift the aggregate demand curve?

Income
Tastes and Preferences
Technology
Investment

15

What does PPC stand for?

Production Possibilities Curve
Production Price curve
Product Price Count
Price Possibility curve

AP Econ.

Questions 15

AP Econ.

Questions 15