Macroeconomics Practice Exam

Picture an AD curve intersecting an SRAS curve at Ppint L on graph 1. Which point(s) would this correspond to on graph 2?

G

Point I on graph 1. Which point(s) would this correspond to on graph 2?

G

Point K on graph 1. Which point(s) would this correspond to on graph 2?

A or B

Point J on graph 1. Which point(s) would this correspond to on graph 2?

C

Point B on graph 2 corresponds to which point(s) on graph 1?

K

Point M on graph 1. Which point(s) would this correspond to on graph 2?

C

Assume that the economy starts off at point A on graph 2 with an effective minimum wage law in place. After inflation erodes the purchasing power of the minimum wage, the economy is likely to move to a point such as

C

Point G on graph 2 corresponds to which point(s) on graph 1?

I or L

Point C on graph 2 corresponds to which point(s) on graph 1?

J or M

Point A on graph 2 corresponds to which point(s) on graph 1?

K