Jeopardy AP Macroeconomics

The negative relationship between price level and output demanded gives the AD curve a/an:

Downward slope

A graphical representation of the relationship between the price level and quantity of goods demanded is called the:

Aggregate demand curve

Identify the 3 lines:

AD, LRAS, and SRAS

The General Theory of Employment, Interest, and Money was written by: 

John Maynard Keynes 

Draw a properly labeled As/AD curve in an inflationary gap:

LRAS, SRAS, and AD

A negative demand shock can cause what kind of gap?

A recessionary gap

If real GDP lies below the potential GDP, an appropriate fiscal policy would be to which would shift  to the __: 

Increase government spending or decrease taxes

Lowering income tax, would shift the curve in which way:

AD to the right

Wage and factor price stickiness causes the aggregate run to:

Positively or move to the right

The MP + The MPC must equal:

One

A decrease in the cost of imported oil would cause:

SRAS to the right

If SRAS intersects AD to the left of lRAS:

Recessionary gap

If the MPS equals .1, then the spending multiplier equals:

10

An increase in the MPC would do what to the spending multiplier:

Increase it

If productivity increases, this would cause the curve to shift:

SRAS to the right

Give an example of a public transfer payment:

Social Security 

Draw “stagflation” on an As/Ad curve:

SRAS shifts to the left

What has the most direct impact on aggregate demand?

Government spending 

If the economy produces $100 of GDP and the MPC is .9, and exports increase by 20 AD should increase by:

$200

GDP = 

If it's a change in  _  it's a change in _

SIGX

SIGX, it's a change in aggregate demand 

An increase in factor prices would cause this curve to shift this way:

SRAS shift to the Left

A positive short-run supply shock would cause what to happen to output and the price level:

Increase output, decrease price level

The economy is operating beyond full employment with an MPC of.75 How much should the government raise taxes to close a 300B gap:

100B

Classical

Government LEAVE!

Keynesian

Government FIX!

Monetary

Federal Bank FIX!