Question bank / Advanced Placement / AP Macroeconomics AP Macroeconomics: Unit 3: National Income and Price Determination Original, AI-authored English practice with worked guidance. Selected topics only; independent teacher review is pending. This is not a complete syllabus, official past-paper collection or predicted exam score. SubjectScout is not affiliated with or endorsed by College Board. SAT practice is not a full adaptive test; AP practice does not simulate an entire exam.
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All topics Unit 1: Basic Economic Concepts (1) Unit 2: Economic Indicators and the Business Cycle (3) Unit 3: National Income and Price Determination (3) Unit 4: Financial Sector (4) Unit 5: Long-Run Consequences of Stabilization Policies (4) Unit 6: Open Economy - International Trade and Finance (3) Official AP framework reference (framework only, not a source of copied questions).
Topic All topics Unit 1: Basic Economic Concepts Unit 2: Economic Indicators and the Business Cycle Unit 3: National Income and Price Determination Unit 4: Financial Sector Unit 5: Long-Run Consequences of Stabilization Policies Unit 6: Open Economy - International Trade and Finance Practice view All questions Unanswered Bookmarked Review mistakes Difficulty All levels Foundation Standard Challenge Search questions
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Loading saved progress Question 3 · Unit 3: National Income and Price Determination · standard
In a simple closed-economy spending model, MPC = 0.75. Government purchases rise by $20 billion. Assume fixed prices, sufficient idle capacity, lump-sum taxes unchanged, and no crowding out or imports. What is the resulting equilibrium real GDP increase? A. $15 billionB. $20 billionC. $60 billionD. $80 billionCheck answer Question 4 · Unit 3: National Income and Price Determination · standard
In an AD-AS model with downward-sloping AD and upward-sloping SRAS, an unexpected input-cost increase affects producers throughout the economy. Hold AD, productive capacity, and other determinants fixed. What happens to short-run equilibrium real output and the price level? A. Output rises and the price level falls.B. Output falls and the price level rises.C. Both rise.D. Both fall.Check answer Question 10 · Unit 3: National Income and Price Determination · challenge
A simple closed-economy spending model has MPC = 0.8. Lump-sum taxes increase by $10 billion and government purchases stay constant. Assume fixed prices, idle capacity, no imports, no interest-rate response, and a constant MPC. What is the equilibrium real GDP change? A. -$40 billionB. -$50 billionC. -$8 billionD. +$40 billionCheck answer All Advanced Placement subjects
