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AP Macroeconomics Review Flashcards | StudBud
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AP Macroeconomics Review
AP Macroeconomics Review
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1
Which of these factors do not cause a shift in the demand curve?
Change in quantity demanded
Change in income
Change in buyer tastes
Change in number of buyers
2
What is the formula used to find economic growth in a nominal sense?
1/1-MPC
GDP2-GDP1/GDP2
1/MPS
GDP2-GDP1/GDP1
3
Restrictive monetary policy will....
1 and 2
reduce borrowing and spending
increase the interest rate
decrease the interest rate
4
Which of the following is not a tool used for expansionary fiscal policy?
combined government spending increases and tax reductions
decreased government spending
tax reductions
increased government spending
5
Contractionary fiscal policy can only be implemented correctly if _______is taken into account.
Okun's Law
Keynes' Law
the ratchet effect
the built-in stabilizer
6
Which of these is not a tool of monetary policy that can be employed by The Fed?
The term auction facility
the reserve ratio
Deposit insurance
Open-market operations
7
Which of these is not part of the M2 money supply?
Savings deposits
stock shares
Money market mutual funds
Small-denominated time deposits
8
Which factor causes a rightward shift in the Production Possibilities Curve?
Advances in technology
Supply shocks
Consumer expectations
Income changes
9
What is the main cause of Demand-Pull Inflation?
an expansion of the money supply
supply shocks
excess demand
coming up with this stuff is hard
10
The Taylor Rule assumes that the Fed has a ____ percent "target rate of inflation".
2.3
4
5
2
11
Which of the following is not a consequence of the crowding-out effect?
budget surpluses
increase in the interest rate
weakening of expansionary policy
decrease in investment spending
12
The interest rate paid on overnight loans is called...
The Federal Funds Rate
The Reserve Requirement
Fractional Reserve Rate
The Reserve Ratio
13
What is the formula for GDP based on expenditures?
GDP= C+I+G+(X-M)
GDP=mgcosθ
GDP= W+I+P+R+D
GDP=W/t
14
The quantity of a good supplied varies ___________ with its price.
inversely
blank
diagonally
directly
15
What is a balance sheet for a commercial bank?
All Hail ¯\_(ツ)_/¯
a statement of assets and claims on those assets
a report on a change in the liabilities
the report on the reserve ratio
