graphing ad & as 25 Points Total

Transcription

1 graphing ad & as 25 Points Total

2 2 Points Each (1 pt. for the graph, 1 pt. for the results) 1. AD increases (shifts right), consumer spending, inflationary gap 2. AS decreases (shifts left), government action or resources costs, recessionary gap 3. AD increases (shifts right), export spending, inflationary gap 4. AD decreases (shifts left), gov. spending or consumer spending, recessionary gap 5. AS increases (shifts right), resource costs, inflationary gap 6. AD increases (shifts right), consumer spending, inflationary gap 7. AS increases (shifts right), productivity, inflationary gap 8. AD decreases (shifts left), export spending, recessionary gap 9. AD increases (shifts right), investment spending, inflationary gap 10. AD decreases (shifts left), consumer spending, recessionary gap 11. AD increases (shifts right), gov. spending, inflationary gap 12. AD decreases (shifts left), consumer spending, recessionary gap

3 FRQ #1 10 Points Total

4 A 10 Points Total i) 1 Point Real Output Increases (as shown on graph) ii) 1 Point Price Level Increases (as shown on graph) P LRAS SRAS P2 P1 AD2 AD Q 1 Q F GDP R

5 B 10 Points Total i) 1 Point Real Output Decreases (as shown on graph) ii) 1 Point Price Level Increases (as shown on graph) P SRAS2 LRAS SRAS P2 P1 AD Q 2 Q 1 Q F GDP R

6 C 10 Points Total i) 1 Point SRAS Decreases (as shown on graph) ii) 1 Point AD Decreases (as shown on graph) iii) 1 Point Real Output Decreases (as shown on graph) iv) 1 Point Price Level is Indeterminate (as shown on graph) P SRAS2 LRAS SRAS P1 AD2 AD Q 2 Q 1 Q F GDP R

7 D 10 Points Total i) 1 Point Correctly drawn/labeled PPC (as shown on graph) ii) 1 Point PPC shifts Inward (as shown on graph) Good X Good Y

8 FRQ #2 7 Points Total

9 A 7 Points Total i) 1 Point Resource quality (human capital) ii) 1 Point Technological Innovation B P LRAS LRAS2 SRAS iii) 1 Point Graph beginning at LR eq. iv) 1 Point Real Output Increases v) 1 Point Price Level Decreases SRAS2 P1 P2 AD Q F Q 2 GDP R

10 c 7 Points Total i) 1 Point Correctly drawn/labeled PPC (as shown on graph) ii) 1 Point PPC shifts Outward (as shown on graph) Good X Good Y

11 FRQ #1 9 Points Total

12 9 Points Total A B i) 1 Point - The main problem facing this economy is inflation ii) 1 Point - Judging by the CPI numbers, this economy has experienced nearly 20% inflation in prices over the last year i) 1 Point - Increase personal income taxes and/or decrease government spending ii) 1 Point - Enacting contractionary fiscal policy (fiscal restraint) as to lower inflation to an acceptable level iii) 1 Point - Tax hikes will reduce disposable income and reduce consumer spending and investment, thus decreasing AD

13 C 9 Points Total i) 1 Point Aggregate Equilibrium (as shown on graph) ii) 1 Point AD Decreases (as shown on graph) iii) 1 Point Real Output Decreases (as shown on graph) iv) 1 Point Price Level is Decreases (as shown on graph) P LRAS SRAS P1 P2 Q F Q 1 AD AD2 GDP R

14 FRQ #2 13 Points Total

15 13 Points Total A i) 1 Point AD Increases (as shown on graph) ii) 1 Point Price Level is Increases (as shown on graph) iii) 1 Point Real Output Increases (as shown on graph) iv) 1 Point Employment Increases P LRAS SRAS P2 P1 AD2 Q F Q 1 AD GDP R

16 b P 13 Points Total i) 1 Point AD Decreases (as shown on graph) ii) 1 Point Price Level is Decreases (as shown on graph) iii) 1 Point Real Output Decreases (as shown on graph) iv) 1 Point Employment Decreases LRAS SRAS P1 P2 Q 1 Q F AD AD2 GDP R

17 C P 13 Points Total i) 1 Point SRAS Increases (as shown on graph) ii) 1 Point Price Level is Decreases (as shown on graph) iii) 1 Point Real Output Increases (as shown on graph) iv) 1 Point Employment Increases LRAS SRAS SRAS2 P1 P2 AD Q F Q 1 GDP R

18 D 13 Points Total 1 Point - Answers may vary. Reasoning behind choosing the policy should show a comprehension of the effects brought about by each policy.