stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
AP Macro: Unit 5 Review Flashcards | StudBud
Explore
/
AP Macro: Unit 5 Review
AP Macro: Unit 5 Review
30 terms
·
StudBud Administration
·
143 plays
Imported from external platform
Flashcards
30 cards
F
Practice quiz
P
Host live
L
Questions
30
Answers
1
In the short run, what most likely happens when expansionary fiscal policy is used with contractionary monetary policy?
real GDP increases
interest rates increase
real GDP decreases
interest rates decrease
2
What is the main cause of crowding out?
a reduction in the money supply
an increase in the money supply
contractionary fiscal policy
expansionary fiscal policy
3
RANDOM! What color is Donald Duck's bowtie?
Yellow
Blue
White
Red
4
Which of the following public policies is most likely to promote long-run economic growth?
an increase in Social Security benefits
a increase in funding for public education
an increase in corporate income taxes
an increase in government spending on the military
5
According to the Phillips curve model, an increase in the expected rate of inflation will cause:
a corresponding rise in unemployment
the short run Phillips curve to shift to the right
the short run Phillips curve to shift to the left
the long run Phillips curve to shift to the right
6
RANDOM! The fear of insects is known as what?
Enochlophobia
Acrophobia
Entomophobia
Arachnophobia
7
Economic Growth is best defined as:
an increase in the labor force participation rate
a decrease in the unemployment rate
a reduction in the rate of inflation
a sustained increase in real GDP per capita
8
If real output is $10,000, and the price level is 2, and the velocity of money is 4, then the money supply is:
$5,000
$8,000
$10,000
$20,000
9
Why does the supply of loanable funds decrease when there is a government budget deficit?
the private sector demands more funds due to lower interest rates
there is a greater demand for loanable funds by the public
there is a decrease in the amount of funds available to borrow
the public sector gets crowded out of the loanable funds market
10
RANDOM! In
The Wizard of Oz,
the Tin Man wanted to see the Wizard about getting:
home
a brain
an oil can
a heart
11
If the velocity of money is stable, the "QT of M" predicts an increase in the money supply will lead to a proportional:
decrease in the price level
increase in the nominal output
decrease in the unemployment rate
decrease in the nominal interest rate
12
RANDOM! What is the name of Captain Jack Sparrow's ship in
Pirates of the Caribbean
?
Black Jack
Black Pearl
Black Marauder
Black Python
13
All of the following statements about a rightward shift of the Production Possibilites Curves is correct
EXCEPT
:
It can be caused by technological advances
It can be caused by lower interest rates that spur investment spending
It is caused by a decrease in the price level
It represents economic growth
14
The goal of expansionary monetary and fiscal policy is:
to reduce a high rate of inflation
an increase in output & an increase in price level
an increase in aggregate demand & reduce unemployment
a decrease in output & a decrease in price level
15
All of the following fiscal/monetary policy actions would be appropriate to combat a recession
EXCEPT
:
Decreasing income tax rates
Selling bonds to banks
Decrease the interest on reserves
Increase government spending
16
LAST BONUS RANDOM! What does the "E" in "Chuck E. Cheese" stand for?
Extra
Enjoy
Energy
Entertainment
17
Which of the following fiscal/monetary policy actions would lead to a decrease in aggregate demand?
A decrease in the discount rate
A decrease in taxes
A decrease in the reserve requirement
A decrease in government spending
18
The quantity theory of money is expressed by which of the following equations?
M x V = Y
M x V = P x Y
M x V / P x Y
M = P x Y x V
19
Which of the following would most likely be supported by a supply-side economist to stimulate economic growth?
a decrease in tax credits on business expansion activities
a decrease in regulations on businesses
an increase in corporate tax rates
an increase in government spending
20
RANDOM! What is the most common blood type?
O-Positive
A-Positive
AB-Negative
B-Positive
21
Money supply = $8,000. Price level = 4. Real output = $6,000. What is the velocity of money?
2
4
6
3
22
Which of the following is one of the effects of crowding out?
increased private investment spending
reduced private investment spending
lower unemployment
lower interest rates
23
BONUS RANDOM! How old do you have to be to enter "The Hunger Games?"
12
10
13
11
24
What is the real GDP per capita in year 2 for this country?
$9.6
$5
$8
$2
25
Which of the following is most likely to promote long-term economic growth?
contractionary fiscal policy
increased production of consumer goods
technological progress and increased human capital
an increase in the natural rate of unemployment
26
The national debt is created when a government:
operates at a deficit more often than it operates at a surplus
decreases its spending and increases its tax revenues
uses expansionary policy to combat a recession
spends more money than it collects in one year
27
RANDOM! What does the "D" in "D-Day" stand for?
Dooms
Dunkirk
Designated
Day
28
Which of the following would cause a change from Point B to Point A on the short run Phillips curve shown below?
a positive supply shock
a negative demand shock
a negative supply shock
a positive demand shock
29
A balanced budget is achieved when:
the government increases spending regardless of tax revvenues
tax revenues exceed government spending
tax revenues can cover all government expenditures
government spending exceeds tax revenues
30
RANDOM! What number was the Apollo mission that successfully put a man on the moon for the first time in human history?
Apollo 11
Apollo 7
Apollo 9
Apollo 13
