AP Econ Final #1

Specialization and international trade have what impact on a PPC?

Banks expand the money supply when

In output problems, comparative advantage is always

The long run Phillips curve shows

If the CPI increases from 100 to 120, then the inflation rate is

The Fed can increase aggregate demand by

LRAS

Which of the following may crowd out private investment?

Negative aggregate supply shocks have what impact on the Phillips curve

An increase in the money supply decreases

If expansionary monetary policy causes the dollar to depreciate, then

Deposit is $1 million. RR=10%. How much are the required reserves?

The financial support for money in the US

What imact does contractionary monetary policy have on the value of the dollar?

Basic proposition of supply-side

If the price of natural resources rise,

An increase in US demand for Japanese goods will

Expansionary fiscal policy will have what impact on interest rates and RGDP?

RR=20%. What is the value of the money multiplier?

What impact does contractionary monetary policy have on trade?

How does an inflationary gap fix itself?

If the government subsidizes the development of business technology,

The main purpose of the Fed

Fiscal policy tools

If the MPC=0.75 and government spending increases by $10 billion then

Expansionary monetary policy has what impact on the value of the dollar

A nation should produce the product with the lowest opportunity cost

The ratio of unemployed people to the nation's labor force

The Fed can increase aggregate demand by

Expansionary monetary policy

If interest rates rise, then bond prices

Aggregate demand curve

Which of these is part of expansionary monetary policy?

Producing more of Good C means producing less of Good B

The price of one currency is terms of another currency

Traditional Phillips curve

If MPC=.75, then the spending multiplier is

Cutting taxes and increasing government spending

In the short run, wages

Why would the Fed lower the discount rate?

Nation X can produce 50 shirts per day. Nation Y can produce 30 shirts per day. Who has the absolute advantage?

The dollar price of the euro increases. What does this mean about the Euro's value?

Value of the US dollar decreases

Which would increase AS?

A leftward shift of the short-run aggregate supply curve

Which of the following can lead to economic growth?

The current account deficit is offset by a(n)

If the government wants to increase output, it should reduce