AP Econ Unit 3.1 Quiz

With an upward-sloping aggregate supply curve, an increase in the money supply will affect the price level and real gross domestic product (GDP) in the short run in which of the following ways?

Price Level:Increase Real GDP: Increase

An increase in which of the following would be most likely to increase long-run growth?

Subsidies to businesses for purchases of capital goods

An increase in which of the following is most likely to cause the short-run aggregate supply curve to shift to the left?

The per unit cost of production

Which of the following are the most likely short-run effects of an increase in government expenditures?

Unemployment Rate: Decrease Inflation Rate: Increase Real GDP: Increase

Because changes in the aggregate price level have no effect on aggregate output in the long run, the long-run aggregate supply curve it...

Verical

Which of the following government policies will shift the aggregate demand curve to the left?

A decrease in the quantity of money (Money Supply Down--Interest Rates Up--Investment Down--Aggregate Demand Down)

With an upward-sloping short-run aggregate supply curve, an increase in government expenditure will most likely...

Increase real gross domestic product

Which of the following will shift the aggregate demand curve to the right?

Increased spending by businesses on computers

If the short-run aggregate supply curve is upward sloping, which of the following will cause inflation?

An increase in aggregate demand

A negative aggregate supply shock will result in which of the following in the short run?

An increase in both the price level and the unemployment rate