AP Macroeconomics Unit 1-3 Study Guide

What is the meaning of scarcity?

What is the definition of economics?

What is the difference between Macroeconomics and Microeconomics?

What are the 5 shifters of demand?

What are the 5 shifters of supply?

How do you find the market equilibrium on the Supply/Demand Curve?

What are the three macroeconomic goals?

What is the mathematical formula to find the GDP?

What are three types of unemployment?

What are the five phases of a business cycle?

What is the formula for Consumer Price Index (CPI)?

What is the big difference between Real GDP and Nominal GDP?

a. What is the definition for Aggregate Demand?

b. Why is the Aggregate Demand curve downward sloping?

a. What is the formula for the Marginal Propensity to Consume (MPC)?

b. If Saima receives $200 and she spent $50, what is the MPC?

a. What is the formula for the Marginal Propensity to Save (MPS)?

b. If the MPC is 0.33 and Emily received $ 300, then what is her MPS?

a. What is the Definition for Aggregate Supply?

b. What is the difference between SRAS and LRAS?

c. What are the 3 shifters of SRAS?

a. Why is the long-run aggregate supply curve vertical?

b. What are the two shifters of the LRAS?

a. What is the formula for the spending multiplier?

b. What is the formula for the Tax Multiplier?

c. If MPC is .80, what is the spending multiplier?

d. If the MPC is .90, what is the tax multiplier?

What are the 3 Output Gaps in the AD/SRAS Curve?

What are the causes of inflation?