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AP Macroeconomics Flashcards: Changes In The Ad As Model

Study Changes In The Ad As Model in AP Macroeconomics with focused flashcards that help you recognize the idea, recall the key rule, and apply it in practice-style prompts.

QUESTION

What is the short-run effect on real GDP if both AD and AS decrease?

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ANSWER

Real GDP decreases. Both curves shifting left reduces equilibrium output.

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AP Macroeconomics: National Income and Price Determination

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This deck focuses on Changes In The Ad As Model, giving you a quick way to review the definitions, rules, and examples that matter most for AP Macroeconomics.

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Work through these flashcards in short sessions. Try to answer each prompt before flipping the card, then revisit any cards you miss until the explanation feels automatic.

Practice questions

1 of 10Practice questions for this set
Based on the AD–AS model shown, the central bank conducts an open-market purchase that increases the money supply, shifting aggregate demand from AD1AD_1 to AD2AD_2 in the short run. Which statement correctly compares the initial equilibrium E1E_1 with the new equilibrium E2E_2?
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