File name: Ap Macro Review Pdf
Rating: 4.8/5 (Based on 3250 votes)
22452 downloads
========================
========================
Production possibilities curves illustrate the limits of what is possible to produce for an economy if all resources are fully employed. A PPC illustrates the possible combinations of output . a. These are applicable to both exams, unless stated otherwise. See more. Trusted By Millions · New Content Daily · Free registration · Ratings & Reviews. Effect of Expansionary Fiscal Policy Treasury sells bonds to fund deficit and bondholders sell existing bonds because the new issues of bonds have higher interest rates than existing issues. UNIT 5 AP MACROECONOMICS From Simple Studies, & @simplestudiesinc on Instagram UNIT 5: Long-run Consequences of Stabilization Policies FISCAL POLICIES: Expansionary Fiscal Policy increases AD curve in short-run (fixes recessionary gap & creates a budget deficit). PPC shows the opportunity cost of using scarce resources for one product vs another (note: Production Possibility Curve and Frontier are the same thing!) What shifts demand? If too low, unemployment. If too high, inflation. For cases of equilibrium less than LRAS, what monetary policy? Effect on Treasury bond prices?: INCREASE when bought.