AP Review #1 – AD and AS. Draw a correctly labeled Aggregate Supply and Aggregate Demand graph that shows that the economy is currently experiencing a.

Slides:

Advertisements

Similar presentations

Macroeconomics Free Response

Advertisements

MACROECONOMICS 2010 FRQ Norman.

Mechanics of Foreign Exchange (FOREX)

J.M. Keynes “The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a.

AP macroeconomics Unit 4: Long Run Economic growth and loanable funds

Top 10 AP Econ Mistakes Overview 11. Compare MSC, MSB 10. Tax → ↑MC → ↓Q 9. Foreign Exchange Market with Shift 8. Automatic Stabilizers 7. Optimal.

Advanced Placement© Annual Conference, 2011 San Francisco, CA

Ch. 16: Output and the Exchange Rate in the Short Run.

AP Macro Review Fun with formulas!.

AP Macroeconomics Macroeconomic Relationships a cheat sheet (Note:.: = therefore)

Free Response Macro Unit #5. 1) The Bank of Redwood has 1,000,000 in total reserves and the reserve ratio is 20%. Draw a correctly labeled T-account which.

MACROECONOMICS 2009 FRQ Norman.

Norman SRAS LRAS AD 1 PL E Answer: 1. (b) (i) As can be seen on the graph, the increase in G would increase AD to AD2, increasing PL and Y. 1. (b) (II)

Macroeconomics Free Response graph of the money market (a) Draw a correctly labeled graph of the money market and show the impact of the financial investors’

Preparing for the AP Exam AP Macroeconomics MR. Graham.

MACROECONOMICS FRQ 2006.

Macroeconomic Policy and Floating Exchange Rates

Money Market and Loanable Funds Two Day Unit. Money Market Money supply (vertical) vs. money demanded (downward sloping) X-axis: Quantity of money Y-axis:

Mr. Sloan Riverside Brookfield High school.  2 Hours and 10 Minutes Long  Section 1-Multiple Choice ◦ 70 Minutes Long ◦ Worth 2/3 of the Score  Section.

GOOD NEWS/BAD NEWS: ISSUES IDENTIFIED ON THE 2011 AP MACRO TEST Chris Cannon Sandy Creek High School.

Robots (thousands) Pizzas (thousands) A B C D E W Attainable but Inefficient Unattainable Attainable.

 Monetary policy- changes in the money supply to fight inflations or recessions.

Module Putting it All Together

1 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt 10 pt 15 pt 20 pt 25 pt 5 pt Loanable.

Norman SRAS LRAS LRPC PL SRPC PL e Y A E1E1E1E1 recession 1.Assume that the U.S. economy is currently in a recession in a short-run equilibrium. short.

Monetary Policy Review

AP Macroeconomics. 1. Review process/hints for writing the Economics FRQ 2. Work through a sample long FRQ.

AP Economics Mr. Bernstein Macro Graphs Review May 2014.

Macro Chapter 14 Modern Macroeconomics and Monetary Policy.

Module 29 The Market for Loanable Funds KRUGMAN'S

Module 31 Monetary Policy & the Interest Rate

“Redelsheimer’s Graphs to Know” AP Macro Review Copyright 2005.

FED buys bonds from the public Draw graph showing effect on interest rate. What happens to value of $ in foreign exchange market?

AP Macro Review. Aggregate Demand Consumption, investment, govt. purchases and net exports (exports – imports) More income, more wealth = more spending.

MACROECONOMICS 2011 FRQ Norman.

Inflation, Unemployment, and Stabilization Policies: Money, Output, and Prices in the Long Run AP Economics Mr. Bordelon.

1. Assume that the U.S. economy is in a severe

Module 32 Money Output & Prices in the Long Run. 1. What are the effects of an inappropriate monetary policy? 2. What is the concept of monetary neutrality?

Monetary Policy. Draw a correctly labeled graph of the Money Market. What happens to equilibrium interest rate if the Fed buys bonds from the public?

Norman 1. Assume that the U.S economy is in long-run equilibrium with an expected inflation rate of 6% and an unemployment rate of 5%. The nominal interest.

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Sponge: Wednesday, May 8 1.Money demand refers to a.the total quantity of financial assets that people want to hold. b.how much income people want to earn.

Money, Output, and Prices in the Long Run. Short-Run and Long-Run Effects of an Increase in the Money Supply Short-Run and Long-Run Effects of an Increase.

1.Draw and label the SRPC 2.Assume AD increases. Describe what happens with the Phillips Curve. 3.Assume AD decreases. Describe what happens with the Phillips.

Macro Chapter 9 An Introduction to Basic Macroeconomic Markets.

Achievement Standard 3.5 Demonstrate understanding of macro-economic influences on the New Zealand economy.

1. The Starting Point Assume the U.S. economy is operating at a level above potential output. Draw a correctly labeled graph...

National Advanced Placement Economics Conference Washington D.C James Chasey Homewood-Flossmoor High School College of DuPage 1985-present.

AP Macroeconomics In-Class Final Exam Review. Economic growth A sustained increase in real per capita GDP stimulate economic growth - Technological progress.

MACROECONOMICS 2010 FRQ Norman.

MACROECONOMICS 2010 FRQ Norman.

The AP Macroeconomics Exam you will take is comprised of two parts, a multiple choice portion, which counts 60 points for 60 questions, or roughly 2/3.

Macroeconomic Relationships a cheat sheet (Note: .: = therefore)

AP Economics Mistakes.

In-Class Final Exam Review

2013 FRQ’s AP Macroeconomics

AP Macroeconomics Final Exam Review.

[*plus extra practice]

Mr. Bernstein Macro Graphs Review May 2017

Monetary and Fiscal Policy Interact

AP Macroeconomics 2004 Question 2.

KRUGMAN’S Economics for AP® S E C O N D E D I T I O N.

Assume that the United States economy is currently in a recession in a short run equilibrium.

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Putting it All Together

Module Putting It All Together

Scenario:. The U. S. economy is in a recession. The recessionary

Module Putting it All Together

Mechanics of Foreign Exchange (FOREX)

AP ECONOMICS: April 12 --Loanable Funds Market Quiz (HO)

Presentation transcript:

AP Review #1 – AD and AS

Draw a correctly labeled Aggregate Supply and Aggregate Demand graph that shows that the economy is currently experiencing a recession. Be sure to label the current price and output levels.

In order to combat a recession, the FED uses the appropriate monetary policy to solve the problem. What is the name for this policy? What are its policy options? Draw a graph showing this policy’s impact on the money market.

Draw the effect of the interest rate change on your AD/AS graph. What happens to AD as a result? Why? How does this affect P, GDP, and unemployment?

How does the interest rate change affect the value of the dollar in the foreign exchange market? Why is this true? How does this impact the flow of financial capital from Japan?

Draw correctly labeled graphs of the foreign exchange market for the U.S. $ and the Japanese yen showing the effect of the interest rate change on the value of the dollar and the Japanese yen.

How do the currency exchange rate changes affect American imports of Japanese products? Why?

The economy is in recession. Assume instead of the monetary policy change, the FED does nothing. What happens to short run aggregate supply as the economy moves toward long run equilibrium? Draw the changes on a new AD/AS graph.

The economy is in recession. Instead of the monetary policy change indicated earlier, the government decides to utilize fiscal policy to correct the problem. What is this policy called? What are the government’s options? Draw an AD/AS graph showing how this affects P and GDP.

What will happen to the government’s budget as a result of their policy change? Draw a correctly labeled graph of the loanable funds market that shows how the policy change impacts the real interest rate. What happens to the real interest rate?

How will the interest rate change affect AD? Why? How will it affect the value of the dollar in the foreign exchange market? Draw a graph of the market for dollars in the foreign exchange market showing this impact.

How will the change in the value of the dollar affect imports and exports? How will that affect AD, P, GDP, and unemployment?