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AP Macroeconomics Exam Review Questions & Answers Movement on Short-Run Phillips Curve - ANSWERSShift in AD (graph movement is in opposite direction) Shift of Short-Run Phillips Curve - ANSWERSShift in SRAS (shift is in opposite direction) Factors of Production - ANSWERS1. Land 2. Labor 3. Capital 4. Technology Shifters of Demand for Loanable Funds - ANSWERS1. Incentive to Invest 2. Contractionary Fiscal Policy (to the right) Shifters of Supply of Loanable Funds - ANSWERS1. ...

AP Macroeconomics Exam Questions and Answers 100% Pass definition of economics - the science of scarcity positive statements - Based on facts. Avoids value judgements (what is). normative - subjective and involves judgement determinants of demand - -tastes and preferences -related goods (substitutes and complements) -Income (inferior vs normal goods) -Buyers (number of consumers) -expectations ( future price expectations) normal goods - goods that consumers demand more of when their in...

AP Macroeconomics: Final Exam Questions and Answers 100% Pass What is the most fundamental issue that economics addresses? - Use of scarce resources Inflation occurs when there is a sustained increase in - average price level An increase in spending in an economy will cause a multiplied increase in GDP because - consumption increases as income increases A contraction in the money supply will most likely change the nominal interest rate and aggregate demand in what way in the short run? - ...

AP MACROECONOMICS FINAL EXAM QUESTIONS AND ANSWERS 100% PASS economics - ..., the study of how society manages its scarce resources scarcity - ...not enough to go around resources - ...simple things that satisfy human wants, used to make other things ceteris paribus - ..., all other things held constant trade-offs - ..., all the alternatives that we give up whenever we choose one course of action over another macroeconomics - ...the study of aggregate economic variables. And the nationa...

AP Macroeconomics Module 1 Questions and Answers 100% Pass Command Economy - --an economy where the government makes all economic decisions about how the factors of production are used. --ex: Cuba --no incentive to take risks b/c the gov't controls the economy --market forces do not factor into decisions made by individuals Market Economy - --the forces of supply and demand determine how economic questions will be answered. --indiv.s own factors of production, have freedom to buy/sel...

AP Macroeconomics: Money Exam Questions and Answers 100% Pass money - Any asset that can be exchanged easily for a good or service what functions does money serve in an economy? - - store of value - medium of exchange - unit of measure store of value - money holds value over time medium of exchange - money can be exchanged for goods and services - prevents the double coincidence of wants that occurs from bartering - money holds purchasing power unit of measure - money can be counted an...

AP Macroeconomics Exam Review Questions and Answers 100% Pass Movement on Short-Run Phillips Curve - Shift in AD (graph movement is in opposite direction) Shift of Short-Run Phillips Curve - Shift in SRAS (shift is in opposite direction) Factors of Production - 1. Land 2. Labor 3. Capital 4. Technology Shifters of Demand for Loanable Funds - 1. Incentive to Invest 2. Contractionary Fiscal Policy (to the right) Shifters of Supply of Loanable Funds - 1. Incentive to Save 2. Monetary Pol...

AP Macroeconomics Tests Questions and Answers 100% Pass A theory is not: - something that models every aspect of reality at once Which of the following is not true about markets - The product market is also called the resource market The force that Adam Smith felt drove any economic system was: - The invisible hand The scientific method is: - a four-step process; requires certain assumptions and simplifications; is used in economics People pursuing their own self-interest are: - perhaps ...

AP Macroeconomics Unit 1 Questions and Answers 100% Pass Capital - Produced goods that can be used as inputs for further production, such as factories, machinery, tools, computers and buildings Ceteris Paribus - A Latin term meaning "all other things constant", or "nothing else changes". The assumption in economics that nothing else changes in a given situation except for the stated change. Complements - Two goods that are used jointly in consumption. Consumers' Surplus - T...