AP Macro Unit 4 Lesson 3 - Spring 2011

5 Questions | Total Attempts: 167

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AP Macro Unit 4 Lesson 3 - Spring 2011 - Quiz

A quiz on the macroeconomic equilibrium and the AD/AS model.


Questions and Answers
  • 1. 
    Which of the following causes a negative supply shock?I. A technological advanceII. Increased productivityIII. An increase in oil prices
    • A. 

      I only

    • B. 

      II only

    • C. 

      III only

    • D. 

      I and II only

    • E. 

      I, II and III

  • 2. 
    Which of the following causes a positive demand shock?
    • A. 

      A decrease in wealth

    • B. 

      Positive consumer expectations for the future

    • C. 

      A decrease in government spending

    • D. 

      An increase in taxes

    • E. 

      A decrease in business investment

  • 3. 
    Stagflation causes a(n) ___________ to the aggregrate price level and a(n) ___________ to real GDP?
    • A. 

      Decrease; increase

    • B. 

      Decrease; decrease

    • C. 

      Increase; increase

    • D. 

      Increase; decrease

    • E. 

      Stays the same; stays the same

  • 4. 
    Which of the following statements is true if this economy is operating at P1 and Y1?I. The level of aggregate output equals potential output II. It is in short-run macroeconomic equilibriumIII. It is in long-run macroeconomic equilibrium
    • A. 

      I only

    • B. 

      II only

    • C. 

      III only

    • D. 

      I and III only

    • E. 

      I, II and III

  • 5. 
     The economy depicted in the graph above is experiencing a(n)
    • A. 

      Shortage

    • B. 

      Surplus

    • C. 

      Recession

    • D. 

      Expansion

    • E. 

      None of the above

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