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Equilibrium in the Aggregate Demand - Aggregate Supply (AD-AS) Model
AP Macro - 3.5
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Equilibrium in the AD-AS Model
Key Concepts to Understand
Question 1 of 4
Which of the following is true when an economy is in a state of long-run equilibrium?
The actual unemployment rate is equal to the natural rate of unemployment.
The aggregate demand curve is vertical.
Actual real GDP is greater than potential real GDP.
The short-run aggregate supply curve is vertical.
Practice Questions: Test Your Understanding
Apply what you've learned with these practice questions. These questions test your understanding of the key concepts.
Question 1 of 3
An economy's actual real GDP is currently $500 billion, while its potential real GDP (full employment output) is estimated to be $550 billion. Based on this information, which of the following is most likely true regarding the unemployment rate?
The unemployment rate is equal to the natural rate of unemployment.
The unemployment rate is below the natural rate of unemployment.
The unemployment rate is above the natural rate of unemployment.
The unemployment rate is zero.
The relationship between the output gap and unemployment cannot be determined.
Key Takeaways
- 📊Master the fundamentals: Understanding these core concepts is essential for success in AP Economics.
- ✅Practice makes perfect: Use the interactive exercises and practice questions to reinforce your understanding.