AP Macro Ultimate Cheat Sheet Model: Key Relationships ( Increase or Decrease) Flashcards
1
Q
Increase Demand - Equilibrium Price?
A
Increase
2
Q
Increase Supply - Equilibrium Price?
A
Decrease
3
Q
Increase Consumer Spending - Real GDP?
A
Increase
4
Q
Increase Interest Rate - Investment?
A
Decrease
5
Q
Increase Inflation - Real Wage?
A
Decrease
6
Q
Increase AD - Price Level?
A
Increase
7
Q
Increase Short-Run AD - Price Level?
A
Decrease
8
Q
Increase Gov Spending - Real GDP?
A
Increase
9
Q
increase Taxes - Disposable income?
A
Decrease
10
Q
Increase MPC - Bond Prices?
A
Decrease
11
Q
Increase Money Supply - Nominal Interest Rates?
A
Decrease
12
Q
Increase Reserve Requirement - Money Supply?
A
Decrease
13
Q
Increase Discount Rate - Money Supply?
A
Decrease
14
Q
Feds Buy Bonds - Money Supply?
A
Increase
15
Q
Increase Interest on Reserves - AD?
A
Decrease