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AP Macroeconomics Exam Review Questions and Answers (Latest Update 2024)
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AP Macroeconomics Exam Review Questions and Answers (Latest Update 2024)
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AP Macroeconomics Exam ReviewQuestions and Answers (Latest Update
2024)
Movement on Short-Run Phillips Curve - Correct Answer ✅Shift in AD
(graph movement is in opposite direction)
Shift of Short-Run Phillips Curve - Correct Answer ✅Shift in SRAS (shift is in
opposite direction)
Factors of Production - Correct Answer ✅1. Land
2. Labor
3. Capital
4. Technology
Shifters of Demand for Loanable Funds - Correct Answer ✅1. Incentive to
Invest
2. Contractionary Fiscal Policy (to the right)
Shifters of Supply of Loanable Funds - Correct Answer ✅1. Incentive to
Save
2. Monetary Policy
3. Expansionary Fiscal Policy (to the left)
Shifters of Money Supply - Correct Answer ✅Monetary Policy
Federal Reserve Bank
Shifters of Money Demand - Correct Answer ✅1. Price Level
2. Income
3. Fiscal Policy
,AP Macroeconomics Exam Review
Questions and Answers (Latest Update
2024)
Shifters of Long-Run Aggregate Supply - Correct Answer ✅Factors of
Production
Shifters of Short-Run Aggregate Supply - Correct Answer ✅1. Factors of
Production (LRAS)
2. Input Costs
3. Supply Shock
Shifters of Aggregate Demand - Correct Answer ✅1. GDP (or its
components)
2. Monetary Policy
3. Fiscal Policy
PPC Graph - Correct Answer ✅Illustrates the production possibilities of 2
products based on amount of resources available
Demand and Supply Graph - Correct Answer ✅
Business Cycle - Correct Answer ✅
AD/AS Graph - Correct Answer ✅
Money Market Graph - Correct Answer ✅
Loanable Funds Graph - Correct Answer ✅
, AP Macroeconomics Exam Review
Questions and Answers (Latest Update
2024)
GDP = C + I + G + Xn - Correct Answer ✅The expenditure approach to
measuring GDP correlates well with aggregate demand (AD)
GDP = W + I + R + P - Correct Answer ✅The income approach to
measuring GDP correlates well with aggregate supply
Calculating Nominal GDP - Correct Answer ✅The quantity of various goods
produced in a nation times their current prices, added together.
GDP Deflator - Correct Answer ✅Price index used to measure inflation
Inflation Rate via the CPI - Correct Answer ✅(This year's CPI - Last year's
CPI)/(Last year's CPI) x 100.
The inflation rate is the percentage change in the CPI from one period to the
next.
Real Interest Rate - Correct Answer ✅the interest rate corrected for the
effects of inflation;
Unemployment Rate - Correct Answer ✅16 or older, actively seeking
employment.
Money Multiplier - Correct Answer ✅1/RR where RR equals the required
reserve ratio. Application: an initial injection of $1,000 of new money into a
banking system with a reserve ratio of 0.1 will generate up to $1,000 x (10)
= $10,000 in total money.
Quantity Theory Of Money - Correct Answer ✅MV = PQ = Y. A monetarist's
view that explains how changes in the money supply (M) will affect the price
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