AP Macro Unit 3 Part 1 Review Game

Question 1

In the long-run aggregate supply curve, output

Accepted Answer

remains constant

Question 2

Why is Aggregate Demand downward sloping?

Accepted Answer

All of the Above

Question 3

This economy is experiencing

Accepted Answer

Stagflation

Question 4

What would cause an increase in the productivity of a factories workers?

Accepted Answer

More Physical Capital, More Human Capital

Question 5

If the spending multiplier is 8, the tax multiplier is

Accepted Answer

7

Question 6

Expenditures on medical care, education, and training are investments in which of these?

Accepted Answer

Human Capital

Question 7

What type of gap is this economy experiencing?

Accepted Answer

recessionary

Question 8

If the MPC is .9 and taxes increase, what is the tax multiplier?

Accepted Answer

9

Question 9

Which of the following is not a shifter of Aggregate Supply?

Accepted Answer

Net Exports

Question 10

An decrease in resource prices will cause aggregate supply to

Accepted Answer

shift right, increase

Question 11

What is represented by the point D?

Accepted Answer

Recessionary Gap

Question 12

In short-run aggregate supply, resources prices and wages will

Accepted Answer

not decrease, not increase

Question 13

If the black plague returns, what would be the result on AD?

Accepted Answer

decrease

Question 14

When price level increases, interest rates have a tendency to

Accepted Answer

rise

Question 15

What does "aggregate" mean?

Accepted Answer

added all together

Question 16

At which point is the equilibrium output and price level?

Accepted Answer

Price: B Output: 2

Question 17

The spending multiplier is always _______ the tax multiplier

Accepted Answer

greater than

Question 18

In which scenario would the following shift in this graph occur?

Accepted Answer

Decrease in Government Spending

Question 19

What formula is this?

Accepted Answer

Spending Multiplier

Question 20

If consumer spending increases, Aggregate Demand will

Accepted Answer

increase

Question 21

If MPC is .5 and consumption increases by $2 million, how much will GDP change?

Accepted Answer

$4 million GDP increase

Question 22

The _______ effect says that the purchasing power of money falls as price levels rise

Accepted Answer

real balance, wealth

Question 23

If exports increase, Aggregate Demand will

Accepted Answer

shift right

Question 24

What type of gap is this economy experiencing?

Accepted Answer

inflationary

Question 25

If MPC is .9, the spending multiplier is

Accepted Answer

10

Question 26

When price level increases, the amount of real GDP demanded will...

Accepted Answer

fall

Question 27

Which has the biggest effect on shifting AD?

Accepted Answer

Spending Decrease

Question 28

What situation is depicted by this graph?

Accepted Answer

Recessionary Gap

Question 29

When price levels rise, _______ American exports will be purchased, causing GDP to _____

Accepted Answer

fewer; fall

Question 30

How would an increase in production shift the PPC curve?

Accepted Answer

Outward

Question 31

"RAP" are the shifters of

Accepted Answer

aggregate supply

AP Macro Unit 3 Part 1 Review Game

Questions 31

AP Macro Unit 3 Part 1 Review Game

Questions 31