Download 5 Steps to a 5 AP Microeconomics Macroeconomics, 2008-2009 by Eric Dodge PDF

By Eric Dodge

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8. Timing is everything, kid. You have about 70 seconds of time for each of the 60 questions. Keep an eye on your watch as you pass the halfway point. If you are running out of time and you have a few questions left, skim them for the easy (and quick) ones so that the rest of your scarce time can be devoted to those that need a little extra reading or thought. Other things to keep in mind: • Take the extra half of a second required to clearly fill in the bubbles. • Don’t smudge anything with sloppy erasures.

8. A—Nominal values do not take into account rising prices. To deflate nominal values to real, divide the nominal value by the price index (in hundredths). Questions from Chapter 13 9. D—A strong stock market increases consumer wealth and optimism, shifting the consumption function upward. The slope of that function (MPC) is unlikely to change. Since AD includes consumption, AD increases. 10. E—In the market for loanable funds, investment (I ) represents demand and saving represents supply. More $I increases the demand for loanable funds and increases the interest rate.

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