AP Macroeconomics Flashcards: Long Run Self Adjustment

Study Long Run Self Adjustment 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 role do flexible prices play in long-run self-adjustment?

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ANSWER

They help restore full employment equilibrium. Prices adjust to eliminate output gaps and restore potential GDP.

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AP Macroeconomics: National Income and Price Determination

Aggregate Demand37 cards

Automatic Stabilizers36 cards

Changes in the AD-AS Model39 cards

Fiscal Policy36 cards

Long-Run Aggregate Supply (LRAS)39 cards

You are hereLong-Run Self-Adjustment38 cards

Multipliers39 cards

Short-Run Aggregate Supply (SRAS)38 cards

The Aggregate Demand-Aggregate Supply Model39 cards

All flashcards

38 cards

What this deck covers

This deck focuses on Long Run Self Adjustment, giving you a quick way to review the definitions, rules, and examples that matter most for AP Macroeconomics.

How to use these flashcards

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 17Practice questions for this set

Based on the AD–AS model shown, the economy is initially in a recessionary gap (

Y_1 < Y^*

). Assume there are no policy actions and that adjustment is not instantaneous. As unemployment remains above the natural rate, wages gradually fall. Which of the following describes what happens to the price level and real GDP as the economy moves from the short run to the long run?

Choose an answer

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