AP Macro Final Review

Microeconomics deals with?
Click the card to flip 👆
1 / 7
Terms in this set (7)
When a local factory closes, why does it spell bad news for the local restaurants?
A. Sales taxes are likely to increase
B. Unemployed factory workers have lower incomes and are less likely to dine out
C. Unemployed factory workers are eligible for government unemployment benefits
D. The opportunity cost of dining out has fallen
E. Prices of raw materials like meat and vegetables are likely to fall
Suppose government economists recommend that policy makers should either increase taxes or decrease government spending. This recommendation was most likely based on the fact that
A. A recession had been detected
B. Too much spending was causing inflation
C. High unemployment was happening
D. Aggregate economic output had been declining
E. Workers enjoy paying higher taxes
If during a period of several months we observe the economy to be simultaneously increasing its level of output and employment we could assume that the economy is in
A. A depression
B. An expansion
C. A recession
D. A turning point between a recovery and a downturn
E. The trough of the business cycle