AP Macro Exam Preparation Quiz

What is the main focus of the video tutorial by Jacob Clifford?

• To explain the grading system of the AP Macro exam.

• To discuss the history of economics.

• To offer 10 multiple-choice questions likely to appear on the AP Macro exam.

• To provide a detailed analysis of the AP Macro exam structure.

In a comparative advantage question, if Country Y can produce more bikes at a lower opportunity cost than Country X, what does Country Y have?

• A comparative advantage in bikes.

• An absolute advantage in bikes.

• No advantage in bikes.

• A comparative disadvantage in bikes.

Which type of unemployment is characterized by individuals being between jobs?

• Seasonal unemployment

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

How is the GDP deflator calculated?

• Nominal GDP divided by Real GDP times 100

• Real GDP divided by Nominal GDP times 100

• Real GDP plus Nominal GDP

• Nominal GDP minus Real GDP

What happens to the short-run aggregate supply if the price of electricity increases?

• It shifts to the right.

• It remains unchanged.

• It shifts to the left.

• It becomes vertical.

If the marginal propensity to consume is 0.75, what is the spending multiplier?

• 2

• 3

• 4

• 5

Which policy involves decreasing taxes to increase consumer spending?

• Supply-side policy

• Fiscal policy

• Monetary policy

• Trade policy

What effect does buying bonds have on the money supply and interest rates?

• Increases money supply and increases interest rates.

• Decreases money supply and increases interest rates.

• Increases money supply and decreases interest rates.

• Decreases money supply and decreases interest rates.

What is the concept of 'crowding out' in economics?

• Private investment increases government borrowing.

• Government borrowing reduces funds available for private investment.

• Private investment has no effect on government spending.

• Government spending increases private investment.

What happens to a country's currency when its real interest rate increases?

• The currency becomes volatile.

• The currency appreciates.

• The currency remains stable.

• The currency depreciates.