An increase in AD causes

movement on the Phillips curve to the left

Which would decrease economic growth?

a decrease in the labor force participation rate

no relationship exists between inflation and unemployment

Which would increase aggregate demand in the US?

increase in incomes of foreigners with whom we trade

A cut in government funding for education would

decrease economic growth in the LR

A decrease in AS causes

GDP decrease, price level increase

Government subsidies for research and development would

increase economic growth in the LR

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AP Macro: Unit V Part 2

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LRAS, Phillips Curve, etc.

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Questions 22

Answers

1
An increase in AD causes
Phillips curve to shift right
movement on the Phillips curve to the right
movement on the Phillips curve to the left
Phillips curve to shift left
2
Which would decrease economic growth?
a decrease in the labor force participation rate
an increase in capital goods
an increase in education of the labor force
a decrease in frictional unemployment
3
In the long run,
the natural rate of unemployment cannot be changed
fiscal policy causes increases in unemployment
no relationship exists between inflation and unemployment
the Phillips curve is horizontal
4
Which would increase the supply of loanable funds?
decrease in investment spending
increase in saving rate
increase in US exports
sale of bonds by the Fed
5
On a PPC, economic growth is shown as a shift
inward
outward
no shift occurs
6
To counteract a recession, the Fed should
raise the reserve requirement
buy bonds
sell bonds
raise the discount rate
7
Highways, bridges, and sewer systems are all part of
productivity
spillover costs
capital goods
infrastructure
8
A supply-side economist would recommend
increasing government spending
cutting corporate income taxes
increasing the money supply
a tax on the purchase of luxury goods
9
The Phillips curve suggests that expansionary fiscal policy can cause
decreasing price level
decreasing productivity
increasing unemployment
increasing price level
10
Nominal wages and prices are sticky/inflexible in the
long run
short run
11
Who owns most of the US debt?
the US public
the US treasury
the Federal Reserve
China
12
Which would increase aggregate demand in the US?
increase in incomes of foreigners with whom we trade
increase in corporate income taxes
increase in worker productivity
appreciation of the US dollar
13
A cut in government funding for education would
decrease economic growth in the LR
increase economic growth in the LR
14
If government tax revenues exceed government spending, we have
a budget surplus
a budget deficit
a balanced budget
a magical unicorn
15
A major negative supply shock can cause
PPC to shift outward
aggregate supply to shift right
aggregate demand to shift right
Phillips curve to shift right
16
In the extended analysis of AD/AS,
LRAS is horizonatal
SRAS is vertical
LRAS is vertical
LRAS slopes upward
17
A decrease in AS causes
GDP decrease, price level indeterminate
GDP increase, price level increase
GDP decrease, price level increase
GDP indeterminate, price level increase
18
An increase in AS causes
movement on the Phillips curve to the left
movement on the Phillips curve to the right
Phillips curve to shift left
Phillips curve to shift right
19
In structural unemployment, who took your job?
a robot
changing weather
a recession
the business cycle
20
In the AD/AS model, economic growth is shown when
LRAS shifts left
LRAS shifts right
AD shifts right
SRAS shifts right
21
Government subsidies for research and development would
decrease economic growth in the LR
increase economic growth in the LR
22
Critics of economic growth argue that it causes
environmental problems
less economic security for workers
income inequality
all of the above

AP Macro: Unit V Part 2 Flashcards | StudBud