AP Macroeconomics Exam Questions With Correct Answers
6 views 0 purchase
Course
AP Macroeconomics
Institution
AP Macroeconomics
AP Macroeconomics Exam Questions With
Correct Answers
Movement on Short-Run Phillips Curve - answerShift in AD (graph movement is in opposite
direction)
Shift of Short-Run Phillips Curve - answerShift in SRAS (shift is in opposite direction)
Shift of Long-Run Phillips Curve - answerFactors of ...
GDP Growth Rate: - answer✔( Current year's GDP - Last year's GDP)/ (Last year's GDP) x 100.
The GDP growth rate is a percentage change in a nation's real output between one year and the
next.
The Inflation Rate via the CPI - 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 - answer✔the interest rate corrected for the effects of inflation; Nominal
interest rate - inflation rate
Unemployment Rate - answer✔(Number of unemployed/Number in the labor force) x 100. The
labor force includes all non-institutionalized people of working age who are employed or seeking
employment.
Money Multiplier - answer✔1/RRR where RRR 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 - answer✔MV = PQ = Y. A monetarist's view that explains how
changes in the money supply (M) will affect the price level (P) and/or real output assuming the
velocity of money (V) is fixed in the short run.
MPC + MPS = 1 - answer✔The fraction of an increase in disposable income that is spent (MPC)
plus the fraction that is saved (MPS) must equal 1.
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 sirjoel. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.