AP®︎ Macroeconomics: Topic 3.3 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 3.3 of AP Macroeconomics – Short-Run Aggregate Supply (SRAS).
Questions List
Topic 3.3
Question 1 Easy
This question tests the following: MOD-2.C.1
What does short-run aggregate supply (SRAS) represent?
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 3.3: Short-Run Aggregate Supply (SRAS)
Learning Objective: MOD-2.C
a. Define (using graphs as appropriate) the short-run aggregate supply (SRAS) curve. b. Explain (using graphs as appropriate) the slope of the SRAS curve and its determinants.
Essential Knowledge: MOD-2.C.1
The short-run aggregate supply (SRAS) curve describes the relationship between the price level and the quantity of goods and services supplied in an economy.
Essential Knowledge: MOD-2.C.2
The SRAS curve is upward-sloping because of sticky wages and prices. [See EK MOD-2.E.1]
Essential Knowledge: MOD-2.C.3
Any factor that causes production costs to change, such as a change in inflationary expectations, will cause the SRAS curve to shift.
Learning Objective: MOD-2.D
Explain (using graphs as appropriate) how movement along the SRAS curve implies a relationship between the price level (and inflation) and unemployment.
Essential Knowledge: MOD-2.D.1
Moving along the SRAS curve, an increase in the price level is associated with an increase in output, which means employment must correspondingly rise. With the labor force held constant, unemployment will fall. So, there is a short-run trade-off between inflation and unemployment. [See EK MOD-3.A.1]
