AP Macro Unit 4 Lesson 3 - Spring 2011
5 Questions
| Attempts: 211
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