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Semester Exam Ap Macro Econ Flashcards | StudBud
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Semester Exam Ap Macro Econ
Semester Exam Ap Macro Econ
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For a project in AP Macro-economics #Econ #AP
Flashcards
21 cards
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Practice quiz
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Questions
21
Answers
1
Which is
not
included in the calculation of GDP
Intermediate products
Final products
Household spending
Government spending
2
Given the consumption function, c=10,000. + .5
y
d, what is c if disposable income equals 30,000
25,000
10,000
15,000
20,000
3
What cause a shift in the
LRAS
Economic growth
A change in the aggregate price level
A increase in technology
A increase in demand
4
When taking out a loan, who benefits the most from high inflation rates.
The loaner
The buyer
The borrower
The loner
5
Which of the following is more responsive to market fluctuations, and responds before the CPI
PPI as factors of production react to climate change
Aggregate price level
Price index
PPI as producers act as an early warning to changes in infla
6
People use time and resources attempting to convert cash into more stable sources of value
Menu Costs
Shoe leather cost
Bootstrap Paradox
Cowboy Costs
7
Why are real GDP expressed in chain dollars as
There are multiple base years
There are multiple base yards
It accounts for inflation and accumulation of the market
Reaganism
8
The area between people and peak and through is known as a
Economic Prosperity
Expansion
Stagflation
Recession
9
What would happen to the
PPC
if there was economic growth.
Shift Inwards
No change
Shift Outward
Would cause a movement along the curve
10
A person who is unemployed due to a mismatch between the labor supplied and the labor demanded
Cyclical Unemployment
Structural Unemployment
Natural unemployment
Frictional Unemployment
11
What is the consumption function
1 / ( 1 - MPC )
a + ( 1 - MPC )( yd )
a + MPC(yd)
1 - MPC
12
If the aggregate price level Is above or below the equilibrium
It will cause inflation
It will shift the LRAS
It will fall or rise to equilibrium prices
It will cause a recession
13
Why are stocks considered risky
The market always changes
There is no guarantee of return
It can cause addiction
When the market crashes, so do you
14
An economy is at equilibrium when
Supply equals demand
Interests rates stabilize price level
The economy is expanding
There is inflation
15
Which of the following is
NOT
one of the four factors of production
Capital
Land
Entrepreneurship
Resources
16
Which would cause a movement along the aggregate demand curve.
A change in the aggregate price level
A change in the value of household assets
A change in government policies
A change in future expectations
17
Why is the saving spending identify not realistic, as it assumes that
People are productibe
The economy will solve itself
People are predictable
There is no government and no interactions in the world
18
The relationship between aggregate output and the unemployment is inverse.
False
True
19
The amount of money flowing into each sector equals the amount flowing out of each sector.
Wrong
True
20
Why is the
LRAS
vertical.
Wages are flexible and aggregate price has no impact on supp
It follows the principles of positive economics
It looks cool
As it's at equilibrium
21
If a point is on the production possibilities curve it is
Efficient
Inefficient
A surplus
Impossible
