AP®︎ Macroeconomics: Topic 3.4 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 3.4 of AP Macroeconomics – Long-Run Aggregate Supply (LRAS).
Questions List
Topic 3.4
Question 1 Easy
This question tests the following: MOD-2.F
What is long-run aggregate supply (LRAS) defined as?
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 3.4: Long-Run Aggregate Supply (LRAS)
Learning Objective: MOD-2.E
Define (using graphs as appropriate) the short run and the long run.
Essential Knowledge: MOD-2.E.1
In the long run all prices and wages are fully flexible, while in the short run some input prices are fixed. A consequence of flexible long-run prices and wages is the lack of a long-run trade-off between inflation and unemployment.
Learning Objective: MOD-2.F
Define (using graphs as appropriate) the long-run aggregate supply (LRAS) curve.
Essential Knowledge: MOD-2.F.1
The LRAS curve corresponds to the production possibilities curve (PPC) because they both represent maximum sustainable capacity. Maximum sustainable capacity is the total output an economic system will produce over a set period of time if all resources are fully employed. [See LO MOD-2.I]
Essential Knowledge: MOD-2.F.2
The LRAS curve is vertical at the full-employment level of output because in the long run wages and prices fully adjust.
