Exam (elaborations)
AP Macroeconomics Exam with correct Answers
- Course
- Institution
AP Macroeconomics Exam with correct Answers
[Show more]
Content preview
AP Macroeconomics Exam with correctAnswers
aggregate iidemand iicurve ii- iiAnswers ii-a iicurve iidepicting iithe iirelationship iibetween
iireal iiGDP iidemanded ii(i.e., iiexpenditures) iiand iithe iiprice iilevel iiin iithe iieconomy; iithe
iiaggregate iidemand iicurve iislopes iidownward iifrom iileft iito iiright.
aggregate iisupply iicurve ii- iiAnswers ii-a iicurve iidefining iithe iirelationship iibetween iireal
iiproduction iiand iiprice iilevel.
business iicycles ii- iiAnswers ii-fluctuations iiin iireal iiGDP iiaround iithe iitrend iivalue; iialso
iicalled iieconomic iifluctuations.
consumer iisurplus ii- iiAnswers ii-the iidifference iibetween iithe iimaximum iiprice iia
iiconsume iiis ii(or iiwould iibe) iiwilling iito iipay iiand iithe iiprice iihe iior iishe iiactually iipays.
cost-push iiinflation ii- iiAnswers ii-inflation iicreated iiwhen iian iiincrease iiin iithe iicosts iiof
iiproduction ii(wages iior iiraw iimaterials) iishifts iithe iishort-run iiaggregate iisupply ii(AS)
iicurve iito iithe iileft; iitends iito iipush iiprices iiup iiwhile iireducing iithe iilevel iiof iireal iiGDP iiat
iithe iisame iitime ii(stagflation).
cyclical iiunemployment ii- iiAnswers ii-unemployment iithat iireflects iichanges iiin iithe
iibusiness iicycle; iithe iidifference iibetween iithe iiofficial iiunemployment iirate ii& iithe
iinatural iirate iiof iiunemployment.
demand-pull iiinflation ii- iiAnswers ii-inflation iithat iifollows iifrom iian iiincrease iiin
iiaggregate iidemand, iiwhich iiwill iicause iiequilibrium iireal iiGDP ii(Y) iito iiincrease iiand iithe
iiequilibrium iiprice iilevel ii(P) iito iiincrease.
depreciation ii- iiAnswers ii-when iithe iiprice iiof iione iicurrency iifalls iirelative iito iianother
iicurrency, iithe iifirst iicurrency iihas iidepreciated iirelative iito iithe iiother iione.
depression ii- iiAnswers ii-period iiin iiwhich iia iirecession iibecomes iiprolonged iiand iideep,
iiinvolving iihigh iiunemployment.
elastic ii- iiAnswers ii-significantly iiresponsive iito iia iichange iiin iiprice.
exchange iirate ii- iiAnswers ii-the iiprice iiof iia iidomestic iicurrency iiin iiterms iiof iia iiforeign
iicurrency.
, expansion ii- iiAnswers ii-period iiin iiwhich iithe iieconomy iimoves iifrom iia iitrough iito iia
iipeak iiand iia iireal iiGDP iiis iiincreasing; iialso iicalled iia iiboom.
expansionary iifiscal iipolicy ii- iiAnswers ii-enacted iiwhen iithe iigovernment iideliberately
iiincreases iiits iideficit iito iistimulate iithe iieconomy; iithe iigovernment iiincreases iiits
iispending ii(increases iiG), iicuts iitaxes ii(decreases iiT), iior iiboth, iiand iistimulates iithe
iieconomy iiby iiexpanding iiaggregate iidemand ii(AD).
expansionary iimonetary iipolicy ii- iiAnswers ii-monetary iipolicy iimethods iiby iiwhich iithe
iiFed iiaims iito iiincrease iithe iimoney iisupply iiand iilower iiinterest iirates, iithereby iicreating
iian iiincrease iiin iioutput; iiin iipursuit iiof iiexpansionary iipolicy iigoals, iithe iiFed iican iilower
iithe iirequired iireserve iiratio, iilower iithe iidiscount iirate, iior iipurchase iigovernment
iisecurities iion iithe iiopen iimarket.
expenditure iiapproach ii- iiAnswers ii-a iiway iiof iimeasuring iithe iiGDP iiby iiadding iiup iiall
iispending iion iifinal iigoods iiand iiservices iiduring iia iigiven iiyear.
fiscal iipolicy ii- iiAnswers ii-changes, iiadjustments, iiand iistrategies iithat iithe iigovernments
iiimplements iiin iispending iior iitaxation iito iiachieve iiparticular iieconomic iigoals.
frictional iiunemployment ii- iiAnswers ii-unemployment iifaced iiby iiworkers iiwho iihave iilost
iitheir iijobs iibecause iiof iichanging iimarket ii(demand) iiconditions ii& iiwho iihave
iitransferable iiskills; iiunemployment iidue iito iithe iinatural iifrictions iiof iithe iieconomy.
Gross iiDomestic iiProduct ii- iiAnswers ii-the iidollar iivalue iiof iiproduction iiwithin iia iination's
iiborder.
Gross iiNational iiProduct ii- iiAnswers ii-the iidollar iivalue iiof iiproduction iiby iia iicountry's
iicitizens.
hyperinflation ii- iiAnswers ii-a iivery iihigh iirate iiof iiinflation, iiunder iiwhich iiprices iigo iiup
iivery iirapidly, iioften iimore iithan ii1,000 iipercent iiin iia iiyear. iiThis iicauses iimoney iito
iibecome iia iipoor iistore iiof iivalue.
import iiquotas ii- iiAnswers ii-restrictions iion iithe iiquantity iiof iia iigood iithat iican iibe
iiimported
inelastic ii- iiAnswers ii-not iisignificantly iiresponsive iito iichanges iiin iiprice.
inferior iigood ii- iiAnswers ii-a iigood iifor iiwhich iithere iiis iiless iidemand iias iiincome iirises;
iia iigood iithe iidemand iifor iiwhich iifalls iias iiincome iirises iiand iirises iias iiincome iifalls;
iiconsumer iiincome iirises iiwhile iidemand iidecreases.
inflation ii- iiAnswers ii-an iiincrease iiin iithe iiprice iilevel
interest ii- iiAnswers ii-the iipayment iithat iicapital iireceives iiin iithe iifactor iimarket.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77824 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now