AP®︎ Macroeconomics: Topic 3.6 Flashcards

Master key terms and definitions for Topic 3.6 of AP Macroeconomics – Changes in the AD–AS Model in the Short Run to help you prep for quizzes and the AP exam.

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Term

Positive Aggregate Demand Shock

Definition

A rightward shift of aggregate demand that raises output, employment, and the price level.

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Positive Aggregate Demand Shock
Not Started

A rightward shift of aggregate demand that raises output, employment, and the price level.

MOD-2.HMOD-2.H.1
Negative Aggregate Demand Shock
Not Started

A leftward shift of aggregate demand that lowers output, employment, and the price level.

MOD-2.HMOD-2.H.1
Positive Short-Run Aggregate Supply Shock
Not Started

A rightward shift of short-run aggregate supply that raises output and employment but lowers the price level.

MOD-2.HMOD-2.H.2
Negative Short-Run Aggregate Supply Shock
Not Started

A leftward shift of short-run aggregate supply that lowers output and employment but raises the price level.

MOD-2.HMOD-2.H.2
Demand-Pull Inflation
Not Started

A rise in the price level caused by an increase in aggregate demand.

MOD-2.HMOD-2.H.3
Cost-Push Inflation
Not Started

A rise in the price level caused by a decrease in short-run aggregate supply.

MOD-2.HMOD-2.H.3
Positive Supply Shock
Not Started

An unexpected increase in key resource availability that lowers costs and increases productivity.

MOD-2.HMOD-2.H.2
Negative Supply Shock
Not Started

An unexpected decrease in key resource availability that raises costs and reduces productivity.

MOD-2.HMOD-2.H.2
Aggregate Demand Determinants
Not Started

Consumer spending, investment spending, government spending, and net exports; changes shift aggregate demand.

MOD-2.H
Short-Run Aggregate Supply Determinants
Not Started

Resource prices and availability, government actions, and productivity or technology; changes shift short-run aggregate supply.

MOD-2.H