AP Macroeconomics Unit 3

Front

Which of the following is true if the production possibilities curve is a curved line concave to the origin? Options: Resources are perfectly substitutable between the production of the two goods., It is possible to produce more of both products., Both products are equally capable of satisfying consumer wants., As more of one good is produced, more and more of the other good must be given up.

Back

As more of one good is produced, more and more of the other good must be given up.

Front

Which of the following best describes aggregate supply?

Back

A schedule indicating the level of real output that will be produced at each possible price level.

Front

The short-run aggregate supply curve will shift to the right when: energy prices increase, government regulation increases, prices of inputs decrease, productivity rates decrease

Back

prices of inputs decrease

Front

The long-run aggregate supply curve will shift to the right when: foreign exports increase, government spending increases, investment increases, consumption increases.

Back

investment increases

Front

A rightward shift in the aggregate demand curve with a horizontal aggregate supply curve will cause employment and the price level to change in which of the following ways?

Back

Increase Employment; No Change to Price Level

Front

The aggregate demand curve will shift to the right as the result of

Back

a decrease in the real interest rate

Front

In the gross domestic product, the largest dollar amount is: consumer spending, rental payments, net exports of goods and services, government purchases of goods and services

Back

consumer spending

Front

Which would be least appropriate for expansionary fiscal policy: Increase taxes, Decrease taxes, Increase government spending, Combination of decreasing taxes and increasing spending?

Back

Increase taxes

Front

This group is responsible for implementing fiscal policy

Back

U.S. Congress

Front

The goal of fiscal policy is to achieve full employment by shifting this curve: Aggregate Demand, Long Run Aggregate Supply, Short Run Aggregate Supply, Phillips

Back

Aggregate Demand