AP®︎ Macroeconomics: Topic 2.7 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 2.7 of AP Macroeconomics – Business Cycles.
Questions List
Topic 2.7
Question 1 Easy
This question tests the following: MEA-2.A.1
What is the term for the cyclical pattern of expansion and recession in the economy?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Macroeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 2.7: Business Cycles
Learning Objective: MEA-2.A
a. Define (using graphs and data as appropriate) turning points and phases of the business cycle. b. Explain (using graphs and data as appropriate) turning points and phases of the business cycle.
Essential Knowledge: MEA-2.A.1
Business cycles are fluctuations in aggregate output and employment because of changes in aggregate supply and/or aggregate demand.
Essential Knowledge: MEA-2.A.2
The phases of a business cycle are recession and expansion.
Essential Knowledge: MEA-2.A.3
The turning points of a business cycle are peak and trough.
Essential Knowledge: MEA-2.A.4
The difference between actual output and potential output is the output gap.
Essential Knowledge: MEA-2.A.5
Potential output is also called full-employment output. It is the level of GDP where unemployment is equal to the natural rate of unemployment. [See EK MEA-1.E.2]
