AP Econ Unit 3 Test

The term aggregate means the

• Sum of none

• Sum of one

• Sum of some

• Sum of all

Shows demand for one good/service at different prices

• Market Demand

• Aggregate Demand

• Market Supply

• Aggregate Supply

Shows demand for all goods/services at different prices

• Market Demand

• Aggregate Demand

• Market Supply

• Aggregate Supply

Unexpected decrease in availability of key resource that temporarily decreases productivity

• Negative Suppply Shock

• Positive Supply Shock

• Disposable Income

• Stagflation

Unexpected Increase in availability of key resource that temporarily increases productivity

• Negative Supply Shock

• Stagflation

• Deflation

• Positive Supply Shock

Dollar amount households have to spend/save after taxes

• Negative Supply Shock

• Positive Supply Shock

• Disposable Income

• Deflation

Decrease in general price level

• Disposable Income

• Deflation

• Stagflation

• Market Demand

High Inflation and High Unemployment in a country's economy

• Market Demand

• Disposable Income

• Deflation

• Stagflation

True or False: The tax multiplier is less than the spending multiplier

• True

• False

Equation to find MPS

• S new - S old

  ---------------------

  Yd new - Yd old

• C new - C old

  -------------------

  Yd new - Yd old

• Δ AD

  -------------

  MPS

• Δ AD

  -----------

  1-MPC