The balance of payments consists of these two accounts, which should sum to zero.

current account and capital and financial account

Which of these statements about long-run aggregate supply (LRAS) is NOT true?

The LRAS curve is upward sloping.

Which of these statements is true of money and banking?

Money can be a unit of account, a store of value, and a medium of exchange.

What is the most likely cause of crowding out?

The government borrows money to finance a deficit.

At what point in the aggregate demand-aggregate supply (AD-AS) model is an equilibrium reached?

when the short-run aggregate supply and aggregate demand curves intersect

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AP Macroeconomics

15 termsStudBud Administration6,218 plays

Are you an expert on the economy? Do you know how inflation, deficits, and other economic issues affect the nation? Put your knowledge to the test with this cumulative Barron's quiz developed from our must-have AP® Microeconomics/Macroeconomics Premium study guide. #apmacroeconomics #apmacro #macroeconomics #highschool #grade11 #grade12 #apexam #apreview #apprep AP® is a registered trademark of the College Board, which was not involved in the production of, and does not endorse, this product.

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Questions 15

Answers

1
The Phillips curve depicts the relationship between which two values in the short run and long run?
nominal interest rate and quantity of money
imports and exports
inflation and unemployment
assets and liabilities
2
A __________ occurs when government spending exceeds tax revenues.
production possibilities frontier
federal deficit
monetary base
federal surplus
3
In the money market, the supply of money curve is _____ since it is _____ by a change in the nominal interest rate.
downward sloping; affected
vertical; not affected
vertical; affected
downward sloping; not affected
4
The balance of payments consists of these two accounts, which should sum to zero.
national economic account and T-account
current account and capital and financial account
general account and local account
M1 account and M2 account
5
All of these are ways of calculating the gross domestic product (GDP) EXCEPT
the value-added approach
the expenditure approach
the income approach
the crowding out approach
6
When the price of a product increases, the quantity demanded decreases (and vice versa). This is defined as the _______.
law of demand
law of comparative advantage
law of supply
equation of exchange
7
Which of these statements about long-run aggregate supply (LRAS) is NOT true?
It can be shifted by changes in production technology.
The LRAS curve is upward sloping.
It can be shifted by a change in the amount of resources in the economy.
A change in prices does not affect the LRAS.
8
This concept illustrates that some amount of one product must be sacrificed when more of another product is desired.
opportunity cost
stagflation
balance of trade
managed float
9
To determine the inflation rate between two time periods, you need to calculate the percentage change in the __________.
consumer price index (CPI)
gross domestic product (GDP) per capita
unemployment rate (UR)
marginal propensity to consume (MPC)
10
Which of these statements is true of money and banking?
The M2 definition of money only includes liquid deposits.
Banks keep all of the money deposited with them on hand.
The M1 definition of money includes small time deposits.
Money can be a unit of account, a store of value, and a medium of exchange.
11
All of these are tools used by the Federal Reserve System to change the money supply and interest rates EXCEPT
open market operations
the net export rate
reserve requirements
the discount rate
12
The value of one country's currency in terms of another's is called the ________.
classical dichotomy
real GDP
money multiplier
exchange rate
13
These government policies promote deficit spending during recessions and surplus budgets during expansions.
T-accounts
automatic stabilizers
GDP deflators
nominal interest rates
14
What is the most likely cause of crowding out?
The government begins using fiat money.
The unemployment rate decreases significantly.
There is a major decrease in interest rates.
The government borrows money to finance a deficit.
15
At what point in the aggregate demand-aggregate supply (AD-AS) model is an equilibrium reached?
when the short-run aggregate supply and aggregate demand curves intersect
when the short-run aggregate supply reaches zero
when the aggregate demand is less than the short-run aggregate supply
when the aggregate demand is greater than the aggregate supply

AP Macroeconomics Flashcards | StudBud

AP Macroeconomics

15 termsStudBud Administration6,218 plays

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
The Phillips curve depicts the relationship between which two values in the short run and long run?
nominal interest rate and quantity of money
imports and exports
inflation and unemployment
assets and liabilities
2
A __________ occurs when government spending exceeds tax revenues.
production possibilities frontier
federal deficit
monetary base
federal surplus
3
In the money market, the supply of money curve is _____ since it is _____ by a change in the nominal interest rate.
downward sloping; affected
vertical; not affected
vertical; affected
downward sloping; not affected
4
The balance of payments consists of these two accounts, which should sum to zero.
national economic account and T-account
current account and capital and financial account
general account and local account
M1 account and M2 account
5
All of these are ways of calculating the gross domestic product (GDP) EXCEPT
the value-added approach
the expenditure approach
the income approach
the crowding out approach
6
When the price of a product increases, the quantity demanded decreases (and vice versa). This is defined as the _______.
law of demand
law of comparative advantage
law of supply
equation of exchange
7
Which of these statements about long-run aggregate supply (LRAS) is NOT true?
It can be shifted by changes in production technology.
The LRAS curve is upward sloping.
It can be shifted by a change in the amount of resources in the economy.
A change in prices does not affect the LRAS.
8
This concept illustrates that some amount of one product must be sacrificed when more of another product is desired.
opportunity cost
stagflation
balance of trade
managed float
9
To determine the inflation rate between two time periods, you need to calculate the percentage change in the __________.
consumer price index (CPI)
gross domestic product (GDP) per capita
unemployment rate (UR)
marginal propensity to consume (MPC)
10
Which of these statements is true of money and banking?
The M2 definition of money only includes liquid deposits.
Banks keep all of the money deposited with them on hand.
The M1 definition of money includes small time deposits.
Money can be a unit of account, a store of value, and a medium of exchange.
11
All of these are tools used by the Federal Reserve System to change the money supply and interest rates EXCEPT
open market operations
the net export rate
reserve requirements
the discount rate
12
The value of one country's currency in terms of another's is called the ________.
classical dichotomy
real GDP
money multiplier
exchange rate
13
These government policies promote deficit spending during recessions and surplus budgets during expansions.
T-accounts
automatic stabilizers
GDP deflators
nominal interest rates
14
What is the most likely cause of crowding out?
The government begins using fiat money.
The unemployment rate decreases significantly.
There is a major decrease in interest rates.
The government borrows money to finance a deficit.
15
At what point in the aggregate demand-aggregate supply (AD-AS) model is an equilibrium reached?
when the short-run aggregate supply and aggregate demand curves intersect
when the short-run aggregate supply reaches zero
when the aggregate demand is less than the short-run aggregate supply
when the aggregate demand is greater than the aggregate supply