AP Macro Ultimate Cheat Sheet Model: Key Relationships ( Increase or Decrease) Flashcards

1
Q

Increase Demand - Equilibrium Price?

A

Increase

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2
Q

Increase Supply - Equilibrium Price?

A

Decrease

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3
Q

Increase Consumer Spending - Real GDP?

A

Increase

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4
Q

Increase Interest Rate - Investment?

A

Decrease

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5
Q

Increase Inflation - Real Wage?

A

Decrease

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6
Q

Increase AD - Price Level?

A

Increase

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7
Q

Increase Short-Run AD - Price Level?

A

Decrease

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8
Q

Increase Gov Spending - Real GDP?

A

Increase

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9
Q

increase Taxes - Disposable income?

A

Decrease

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10
Q

Increase MPC - Bond Prices?

A

Decrease

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11
Q

Increase Money Supply - Nominal Interest Rates?

A

Decrease

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12
Q

Increase Reserve Requirement - Money Supply?

A

Decrease

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13
Q

Increase Discount Rate - Money Supply?

A

Decrease

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14
Q

Feds Buy Bonds - Money Supply?

A

Increase

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15
Q

Increase Interest on Reserves - AD?

A

Decrease

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16
Q

Increase Inflation - Real Interest Rate?

A

Increase

17
Q

Increase Deficit Spending - Real Interest Rate?

A

Increase

18
Q

Increase Capital Stock - Economic Growth?

A

Increase

19
Q

Increase Appreciation - Net Exports?

A

Decrease

20
Q

Increase Interest Rates - Net Capital Flow?

A

Increase