AP®︎ Macroeconomics: Topic 5.2 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 5.2 of AP Macroeconomics – The Phillips Curve.
Questions List
Topic 5.2
Question 1 Easy
This question tests the following: MOD-3.A
What does the Phillips Curve illustrate?
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 5.2: The Phillips Curve
Learning Objective: MOD-3.A
a. Define (using graphs as appropriate) the short-run Phillips curve and the long-run Phillips curve. b. Explain (using graphs as appropriate) short-run and long-run equilibrium in the Phillips curve model.
Essential Knowledge: MOD-3.A.1
The short-run trade-off between inflation and unemployment can be illustrated by the downward-sloping short-run Phillips curve (SRPC).
Essential Knowledge: MOD-3.A.2
An economy is always operating somewhere along the SRPC.
Essential Knowledge: MOD-3.A.3
The long-run relationship between inflation and unemployment can be illustrated by the long-run Phillips curve (LRPC), which is vertical at the natural rate of unemployment.
Essential Knowledge: MOD-3.A.4
Long-run equilibrium corresponds to the intersection of the SRPC and the LRPC.
Essential Knowledge: MOD-3.A.5
Points to the left of long-run equilibrium represent inflationary gaps, while points to the right of long-run equilibrium represent recessionary gaps.
Learning Objective: MOD-3.B
Explain (using graphs as appropriate) the response of unemployment and inflation in the short run and in the long run.
Essential Knowledge: MOD-3.B.1
Demand shocks correspond to movement along the SRPC.
Essential Knowledge: MOD-3.B.2
Supply shocks correspond to shifts of the SRPC.
Essential Knowledge: MOD-3.B.3
Factors that cause the natural rate of unemployment to change will cause the LRPC to shift.
