AP Macro Graph Practice II: Phillips Curve and AS/AD

Front

A movement from A to B would represent

Back

an increase in AD in the AS/AD model.

Front

A movement from B to A on the curve would represent

Back

a decrease in AD in the AS/AD model.

Front

A decrease in AD would cause a(n)

Back

downward movement on the Phillips Curve.

Front

An increase in AD would cause a(n)

Back

upwards movement on the Phillips Curve.

Front

A movement from A to B could be caused by: an increase in the Supply of Money, a decrease in the discount rate, an increase in government spending, a decrease in taxes, an increase in the Federal Funds rate.

Back

an increase in the Federal Funds rate.

Front

A movement from A to B could be caused by: an increase in the Supply of Money, a decrease in the discount rate, an increase in government spending, an increase in taxes, a decrease in the Federal Funds rate.

Back

an increase in taxes.

Front

The movement from A to B to C is best described by

Back

the natural rate hypothesis.

Front

The movement from B to C would be reflected on the AS/AD model as

Back

a decreasing shift of AS from an inflationary gap to full employment.

Front

The movements on each graph could be caused by: a major technological innovation, a decrease in the reserve requirement, an increase in government spending, a decrease in taxes, an increase in the cost of a major resource such as oil.

Back

a major technological innovation.

Front

The movements on each graph could be caused by: a decrease in wages, an increase in the discount rate, an increase in government spending, a decrease in taxes, a major loss of innovation or ideas such as the burning of the library at Alexandria.

Back

a decrease in wages.