AP Econ Final #2

All final goods and services produced in an economy in a given year

Inflation rises 10%, nominal income increases by 5%, real wages

If the price of a natural resource decreases, then

Which policy to finance the debt might crowd out private spending?

if real output is $9,000 and the price level is 2 and the velocity of money is 3, then the money supply is

In an inflationary gap, equilibrium GDP is

If the central bank sells bonds, what will happen to the value of a country's currency?

An economy where the government decides what gets produced and how

If you spend more than you make, you have a

In a recessionary gap, the equilibrium GDP is

US dollar depreciates

A period of decline in the business cycle

fundamental issue of economics

discouraged workers

$10,000 raise. Spend $8,000. MPC is

If Canada's interest rates are higher than Mexico's, then

Sustained rise in the general level of prices

Technological improvements will shift

Which is adjusted for inflation?

Your jerb moved to a different country

The financial support for US dollars comes from

Which of these is not a capital good

Which event will decrease AD?

Who is most likely to benefit from unexpected inflation?

If the government increases spending without increasing taxes, it will incur a

GDP formula

With a PPC, inefficient use of resources is represented by

Someone looking for their first job out of college is considered

The long run is a period in which nominal wages

Which would most likely increase short-run aggregate supply?

Economic growth

Which policy will help an economy recover from a recession?

If demand increases,

US dollar depreciates

A final good

MPC=.8. Change in GDP=60. Change in investment spending?

Which would contribute to Japan's current account surplus?

Ups and downs in an economy

If the economy is operating on the PPC, it represents

Too much money chasing too few goods

In order to finance government borrowing, the central bank must

An economy with private property and the invisible hand guides it

What type of unemployment occurs during a recession?

Instead of building a national park, I built a wall. So I lost a park and gained a wall

An individual who starts their own business

The idea that one dollar of spending can produce $5 of GDP