AP Macro- AD-AS Model

Increasing aggregate demand will generate _ in real GDP and _ in the price level in the SR.

According to John Maynard Keynes, who should spend in a recession if no one else will?

What is the best combination of fiscal policies to fix this economy?

Which of the following illustrates how an automatic stabilizer would work in a recession.

Fiscal policy refers to the manipulation of ___ by the government

The long run in macroeconomic analysis is a period in which:

The main idea of the multiplier effect is that

Classical economics states that

According to the wealth effect, when the price level decreases, the purchasing power of assets:

To close an inflationary gap of $100B in an economy w/ a with MPC of .8, requires a:

After the initial shift, in the long run the economy will move from:

When an economy experiences stagflation, it is usually caused by a:

If the dollar appreciates , how will the U.S. economy be affected in the Short Run?

The short run in macroeconomic analysis is a period in which

The aggregate supply curve shows the relationship between:

If the government spends 10 Billion Dollars and the MPC is .9, then GDP will increase by

The Aggregate Demand shift could be caused by

The short run aggregate supply shift could be caused by

The long-run aggregate supply curve is:

When government revenues fall below expenditures there is a

Which of the following might be part of a contractionary policy?

The amount of GDP bought by C, I, G, and foreigners at different price levels is called

What is going on in this economy?

Based on the short run shift shown, this economy is:

All of the following is true of the graph below EXCEPT