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AP Macroeconomics Final Questions and Answers (Latest Update 2024)
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AP Macroeconomics Final Questions and Answers (Latest Update 2024)
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AP Macroeconomics Final Questions andAnswers (Latest Update 2024)
Which of the following would most likely result from a
decrease in government spending? - Correct Answer ✅A
decrease in aggregate demand
Aggregate demand may be measured by adding - Correct
Answer ✅consumption, investment, government spending,
net exports
Which of the following statements best describes the impact
of a decrease in Japanese income on aggregate demand in
the United States? - Correct Answer ✅Aggregate demand
will decrease because the demand for United States exports
decreases.
Which of the following will result in a rightward shift of the
aggregate demand curve? - Correct Answer ✅An increase
in exports
An increase in which of the following would cause the
aggregate demand curve to shift to the left? - Correct
Answer ✅Income taxes
,AP Macroeconomics Final Questions and
Answers (Latest Update 2024)
Assume that the marginal propensity to consume is 0.90. As
a result of an increase in the tax rates, the government
collects an additional $20 million. What will be the impact on
gross domestic product (GDP) ? - Correct Answer ✅GDP
will decrease by a maximum of $180 million.
Assume that Jane's marginal propensity to consume equals
0.8, and that in 2004 Jane spent $36,000 from her disposable
income of $40,000. If her disposable income in 2005
increased to $50,000, her consumption spending increased
by - Correct Answer ✅$8,000
An aggregate supply curve may be horizontal over some
range because within that range - Correct Answer
✅resources are underemployed and an increase in demand
will be satisfied without any pressure on the price level
The short-run aggregate supply curve is likely to shift to the
left when there is an increase in - Correct Answer ✅the
cost of productive resources
, AP Macroeconomics Final Questions and
Answers (Latest Update 2024)
Which of the following will remain unchanged when the price
level decreases? - Correct Answer ✅Nominal wages
Which of the following explains why the long-run aggregate
supply curve corresponds to the production possibilities
curve? - Correct Answer ✅Both curves illustrate the
maximum sustainable capacity.
The graph above shows the macroeconomic conditions of
Wattsonia. Many economists estimate that the natural rate of
unemployment is 6 percent. If this is true and the current rate
of unemployment is 5.1 percent, in what range of real gross
domestic product is the economy currently producing? -
Correct Answer ✅Greater than Y2
The intersection of the aggregate supply curve and the
aggregate demand curve occurs at the economy's
equilibrium level of - Correct Answer ✅real national output
and the price level
A decrease in business taxes would lead to an increase in
national income by increasing which of the following? -
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