<p>^</p>
<p><a href=“http://talk.collegeconfidential.com/ap-tests-preparation/700107-consolidated-list-ap-exam-curves.html[/url]”>http://talk.collegeconfidential.com/ap-tests-preparation/700107-consolidated-list-ap-exam-curves.html</a></p>
<p>according to the link ull need ABOUT a 50 out of 90, remember it varies form year to year.</p>
<p>QUOTE: "when the aggregate demand decreases, the RGDP obviously decreases as well. How would that change look like on the AD/AS curve? "</p>
<p>AD curve shifts in (to the left). AS curve remains unchanged.</p>
<p>is anyohe really good at the free response? i tried them on collegeboard. i dont htink i was able to do a single question</p>
<p>PR gives the GDP Deflator as cost of current year market basket at (current prices/cost of current year market basket at base year prices)x100, but Barron’s gives the Deflator as (GDP/Real GDP)x100. Which one is correct?</p>
<p>It’s the same thing. Although thanks for posting that because I didn’t realize it until you made me think about, and Barron’s definition is much easier to remember and picture.</p>
<p>“Current year quantities” just means Nominal GDP, Output, whatever. And at current price levels, well that just means that it hasn’t been adjusted for inflation yet.</p>
<p>The denominator of the GDP Deflator is quantity (Nominal GDP) * base year prices, which just signifies that you have to adjust for inflation. In order words, it’s just like the PQ you see in the monetarist MV=PQ equation (if that makes it easier to think about), where PQ=Real GDP.</p>
<p>So yeah, the way Princeton Review makes the GDP Deflator is basically just Q/PQ * 100. Same thing as Barron’s: GDP/Real GDP * 10…</p>
<p>They are both correct. I wouldn’t worry too much about formulas (because we have no calculator just remember relationships). If real GDP is greater than nominal there is deflation. Inflation/deflation can be calculated using the GDP or a market basket. It is essentially looking at the comparison of two things to create a conversion factor. Its like comparing Celsius and Fahrenheit. To get the correct F you have to do a series of calculations. </p>
<p>I don’t know if that made it more confusing or less confusing.</p>
<p>bleh im gonna hate this test</p>
<p>do any of ur teachers say its an “easy 5 but a hard 3?”</p>
<p>lol mine does and a 3 is soooo hard lol</p>
<p>Easy 5 but a hard 3? What? lol
Should be at least a relatively easy 4 for me. :)</p>
<p>I have the " 5 steps to a 5" econ book and i need to know how close the practice tests are to the real thing. Although there’s only one day till the test, should i take some of the princeton review exams in their study guide?</p>
<p>The Fed <em>can</em> control the discount rate (rate at which banks can get emergency funds to meet the required reserve ratio); you guys are right in saying that open market operations are the main monetary policy method though.
EDIT: discount rate = commercial banks lending from Fed
federal funds rate = commercial banks lending from another commercial bank</p>
<p>Hey in 5 steps to a 5, which chapters are the ones to study for macro? since there is micro and macro in the book but it doesnt specify which is which</p>
<p>Sorry for the late post (see one of my earlier posts about comp. advantage and trade), but anyway, no I’m pretty sure the trading terms should be between the two opp. costs and you’re pretty much saying the same thing–you just worded it differently. For 1 bike= 2-4 hats, that’s still between the opp. cost of 1/2 to 4 because if you chose 3 hats, then it would be 1/3 or 3, which are both between that range (you will NEVER have a terms of trade where one is in the range and one isn’t =P). Your way to explain it > my way to explain it probably, but we’re explaining the same thing :)</p>
<p>EDIT: Oh except mine allows for more variability in that you can have a trading term of 2 bikes= 3 hats because that still benefits both and 2/3 or 3/2 both work.</p>
<p>Oh! haha I see it now >.< That’s just the way I remember it haha Thanks~~</p>
<p>stueydue: look at the poart of the book with the asessteent test (the part towards the beginning that has like a 30 question froe each macro and micro.</p>
<p>At the very end of that section (where the part that shows you your score conversion) thers a little note at the bottom taht says what chapters covers what</p>
<p>gpowsang</p>
<p>a few questions…answer whichever ones you want</p>
<p>1) What exactly should we know about Keynesian theory?
2) What are supply shocks?
3) What’s the difference between the moneys (M1 v M2 v MZM, etc)
4) Whats quantity theory?
5) Whats income velocity?</p>
<p>Thanks! Sorry for all the questions, i put them in level of importance</p>
<p>HERE IS A QUESTION I DO NOT GET</p>
<p>“In an economy in which all prices and wages are completely flexible, an increase in labor productivity will result in which of the following changes in output and real wages?”</p>
<p>A) Output Increase, Real wages increase
B) Output increase, Real wages decrease
C) Output decrease, Real wages no change
D) Output decrease, real wages increase
E) Output decrease, real wages decrease</p>
<p>help!!</p>
<p>im not positive but i htink its B</p>
<p>an increase in labor productivity would shift the aggregate supply curve to the right, which increases output, since aggregate demand isnt changing a shift in aggregate supply will increase the price level (look at the graph), therefore real wages will decrease since real wages are nominal wages adjusted for the price level (which is rising)</p>
<p>the answer is A but your explanation helped me to understand why now. If you shift AS rightward, output increases, and PL decreases. And since PL decreases, real wages would increase since real wages are nominal-PL</p>
<p>Another random question, what is the difference between flexible and inflexible wages and prices?</p>
<p>
</p>
<p>“flexible wages and prices” basically refer to the classical theory. essentially it says that wages will quickly adjust to any change in output prices and vice versa. it means that any increase in general price level due to increased aggregate demand, for example, will increase demand for inputs and quickly cause input prices (incl wages) to increase as well, which will then decrease aggregate supply. this quickly offsets the rightward shift in aggregate demand and causes equilibrium to be restored at the original real output but at a higher price level. This traces out a vertical line of AD-AS equilibrium - which is the vertical longrun aggregate supply curve.</p>
<p>pls correct if wrong, thanks :)</p>
<p>From t[he FRQ instructions:</p>
<p>
</p>
<p>Guys, what does this mean? Do we have to explain our reasoning for EVERY single question? I thought we had to explain our answers only when the question explicitly asks us to explain?</p>
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</p>
<p>Can I use a pencil to draw my graphs and diagrams?</p>