AP Macroeconomics Exam Correct Answers New Update (Verified A+ Pass)
7 views 0 purchase
Course
AP Macroeconomics
Institution
AP Macroeconomics
AP Macroeconomics Exam Correct Answers New Update (Verified A+ Pass)
GDP - Answers - total value of all final goods and services produced in a year within that country
What is excluded from GDP? - Answers - Intermediate goods, financial transactions, private and public transfer payments, ho...
AP Macroeconomics Exam Correct
Answers New Update (Verified A+
Pass)
GDP - Answers -✔✔ total value of all final goods and services produced in a year
within that country
What is excluded from GDP? - Answers -✔✔ Intermediate goods, financial
transactions, private and public transfer payments, home production
Expenditure Approach of GDP - Answers -✔✔ GDP=C+I+G+(X-M)
C= - Answers -✔✔ personal consumption by household
I= - Answers -✔✔ investment
G= - Answers -✔✔ Government purchases
X= - Answers -✔✔ exports
M= - Answers -✔✔ imports
Income Approach of GDP - Answers -✔✔ GDP= NI+depreciation-subsidies+net
income of foreigners
NI= - Answers -✔✔ sum of income earned by factors of production
Net Domestic Product - Answers -✔✔ GDP - Depreciation
Nominal Salary - Answers -✔✔ Actual number of dollars
Real Salary - Answers -✔✔ Purchasing power
Consumer Price Index - Answers -✔✔ Cost of Base Year Market Basket @ Current
Prices / Cost of Base Year @ Base Year Prices * 100%
Producer Price Index - Answers -✔✔ Similar to CPI, but just includes prices of
wholesale goods
, Inflation Between Years Y and Z - Answers -✔✔ [CPI in Year Z / CPI in Year Y] - 1 *
100%
Real GDP - Answers -✔✔ Nominal GDP/ CPI for same year at nominal figure * 100%
GDP Deflator - Answers -✔✔ Cost of Current Year Basket at Current Prices/ Cost of
Base Year Basket at Base Year Prices * 100
Frictional Unemployment - Answers -✔✔ As people search for best matches
Structural Unemployment - Answers -✔✔ Result of a skills mismatch
Discouraged Workers - Answers -✔✔ Those who are willing and able to work, but
become so frustrated in their attempts to find work that they stop trying
Natural Rate of Unemployment - Answers -✔✔ ~5%
Full Employment= - Answers -✔✔ Natural Rate of Employment
Okun's Law - Answers -✔✔ For every 1% increase in the unemployment rate above
the natural rate, output decreases by 2-3%.
Price Level = - Answers -✔✔ Average Level of ALl prices
Aggregate Supply Curve - Answers -✔✔
Aggregate Supply shifts right when... - Answers -✔✔ Inputs become cheaper, more
produce or more plentiful, government policies reduce production costs, good weather,
or macro disturbances (wars) end.
Say's Law - Answers -✔✔ Supply creates its own demand
Keynes: - Answers -✔✔ Investment demand depends more on expectations about the
prosperity of the economiy than on interest rates
Keynesian Analysis - Answers -✔✔ Wages can't adjust that quickly
Rational Expectations - Answers -✔✔ people learn to anticipate government policies
designed to influence the economy
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 Stuviaascorers. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.99. You're not tied to anything after your purchase.
