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AP Macroeconomics Unit 1 test Questions and Answers 100% Pass economics - study of how society manages its scarce resources macroeconomics vs microeconomics - macro: study of nation wide phenomena like inflation, growth and income etc. micro: concerned with specific households and firms Scarcity - society has limited resources and cant produce all goods and services that people want GDP and its formula - monetary value of all finished goods made by each worker in a specific time formula:...

AP Macroeconomics: Unit 2 Exam Questions and Answers 100% Pass national income accounting - The techniques used to measure the overall production of the economy and other related variables for the nation as a whole. gross domestic product - The total market value of all final goods and services produced annually within the boundaries of the United States, whether by U.S. or foreign-supplied resources. intermediate goods - products that are purchased for resale or further processing or manu...

AP Macroeconomics Unit 2 Progress Check: MCQ Questions and Answers 100% Pass Which statement is true about the circular flow diagram of an economy? A) The market for goods and services connects household spending to government spending. B) The market for factors of production connects household spending to goods produced by firms. C) The market for factors of production connects spending by firms to household income. D) The market for goods and services connects labor income to firms as e...

Supply and Demand: AP Macroeconomics Exam Questions and Answers 100% Pass competitive market - a market in which there are many buyers and sellers of the same good or service, none of whom can influence the price at which the good or service is sold. supply and demand model - a model of how a competitive market works demand schedule - the actual amount of a good or service consumers are willing and able to buy at specific price. quantity demanded - the actual amount of a good or service c...

AP Macroeconomics Exam Questions All Solved New Update (Verified A+ Pass) Circular flow - A model that shows how households and firms circulate resources, good, and incomes through the economy. This basic model is expanded to include the government and the foreign sector. Closed economy - A model that assumes there is no foreign sector (imports and exports) Aggregation - The process of summing the microeconomic activity of households and firms into a more macroeconomic measure of economic...

AP Macroeconomics Exam Questions Complete Solutions New Update (A+ Pass) What are the components of GDP - Consumption, investment, government spending, and net exports (exports minus imports). What is "C" in the GDP equation? - Consumption which is done by households. It is all of the goods and services we spend our money on. What is GDP (besides Gross Domestic Product)? - The total value of goods and services produced in a country over a given period of time. It is a measure of eco...

AP Macroeconomics Exam Test Questions Verified Marking Scheme Current Update (Verified Pass) aggregate demand curve - a curve depicting the relationship between real GDP demanded (i.e., expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right. aggregate supply curve - a curve defining the relationship between real production and price level. business cycles - fluctuations in real GDP around the trend value; also called economic fluctu...

AP Macroeconomics Exam Questions Correct Solutions New Update (Verified A+ Pass) Macroeconomics approaches the study of economics from the viewpoint of: - the entire economy Which of the following is a macroeconomic statement? - the gross profits of all American businesses were $181 billion last year To be considered scarce, an economic resource must be - limited and desirable, but not free The opportunity cost of producing an additional unit of product J is - the amount of product K that...

AP Macroeconomics Exam Verified Marking Scheme New Update (Verified A+ 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) Shift of Long-Run Phillips Curve - Factors of Production/Shift in LRAS (shift is in opposite direction) Factors of Production - 1. Land 2. Labor 3. Capital 4. Technology 5. Sometimes Foreign Trade Shifters of Demand for Loanable Funds -...