AP Macro Unit 3: National Income and Price Determination

An increase in which of the following is most likely to cause the SRAS curve to shift left? 

What would cause movement from A to B on this Phillips Curve?

Which of the following will shift the aggregate demand curve to the right? 

If nominal wages fall, then short-run aggregate:

An increase in consumer confidence will shift

An increase in income taxes will shift

A decrease in imports and an increase in exports will shift

A decrease in input costs will shift

An appropriate fiscal policy to combat a recession would be to increase which of the following?

What are the axis of the Phillips Curve?

Expansionary fiscal policy:

A negative demand shock can cause:

The level of output that the economy would produce if all prices and wages, were flexible is

In the long run, nominal wages are:

The Long-Run Aggregate Supply curve is:

An increase in exports will shift

The short-run aggregate supply curve is:

How would stagflation alter a Short-Run Phillips Curve?

A discretionary fiscal policy action to reduce inflation in the short run would be to 

Fiscal policy refers to:

A downward movement along the fixed short-run Phillips curve indicates

When DPI increases by $100 spending increases by $90.  What is the spending multiplier?

The Phillips Curve represents the relationship between

What shifts the Short Run Phillips Curve?

A recessionary GAP

On the AS/AD model, where is the Recessionary gap?

An increase in worker productivity will shift

The Aggregate Demand curve is:

An increase in government spending will shift the 

If MPS is .2, the TAX MULTIPLIER will be

An increase in imports will shift

The long-run Phillips curve is:

MPS + MPC = ?

Automatic stabilizers include all of the following EXCEPT

If the MPC is .75 the spending multiplier is

To close a recessionary gap employing fiscal policy, the government could:

What fiscal policy would be appropriate here?

An increase in the price of oil will shift