AP®︎ Macroeconomics: Topic 3.5 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 3.5 of AP Macroeconomics – Equilibrium in the Aggregate Demand–Aggregate Supply (AD–AS) Model.
Questions List
Topic 3.5
Question 1 Easy
This question tests the following: MOD-2.G.1
In the short-run aggregate demand-aggregate supply model, equilibrium occurs where which curves intersect?
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 3.5: Equilibrium in the Aggregate Demand– Aggregate Supply (AD–AS) Model
Learning Objective: MOD-2.G
Explain (using graphs as appropriate) the short-run and long-run equilibrium price level and output level.
Essential Knowledge: MOD-2.G.1
Short-run equilibrium occurs when the aggregate quantity of output demanded and the aggregate quantity of output supplied are equal—i.e., at the intersection of the AD and SRAS curves.
Essential Knowledge: MOD-2.G.2
Long-run equilibrium occurs when the AD and SRAS curves intersect on the LRAS—i.e., at the full-employment level of real output.
Essential Knowledge: MOD-2.G.3
The short-run equilibrium output can be at the full-employment level of output, above it, or below it, creating positive (i.e., inflationary) or negative (i.e., recessionary) output gaps.
