<p>i need a copy :(</p>
<p>Yeah, anybody has a PDF version of 05 exam I can use for practice?</p>
<p>Doing practice tests this late? Wow.</p>
<p>Some people are on the West Coast, only 9:21pm here. Another 1-2 hours of solid studying time left for Macro.</p>
<p>Quick question.
How do I go about MC questions that ask for “the best mix of policies?”</p>
<p>Mix policies as in fiscal and monetary?
Well, those would be heavily debated topics Keynesian vs. Monetarist.
You could say an expansionary fiscal policy and expansionary monetary police would be beneficial because the decrease in Real GDP caused by the fiscal policy would be offset by the increase in Real GDP in monetary policy.</p>
<p>That’s just one example I’m sure there are a few more.</p>
<p>YO IM STILL STUDYING YEAH. 12:53 FTW!!!</p>
<p>if i can pull off a five with one night’s study. omg. >:)</p>
<p>its 12 for me and just started macro! :D</p>
<br>
<br>
<p>Under rational expectations, an announced expansion in the money supply will change nominal and real gross domestic GDP in which of the following ways?</p>
<p>Nominal GDP / Real GDP
A. Increase/increase
B. Increase/decrease
C. increase/no change
D. no change/ decrease
E. no change/ no change</p>
<p>I don’t understand how to solve this; can someone explain please?</p>
<p>Hey guys I found the 1995 Micro test answer responses. Its pretty good.</p>
<p>[1995</a> AP Microeconomics Exam Answers](<a href=“http://wyvern.k-o.org/deeter.t/micropq/1995mic.htm]1995”>http://wyvern.k-o.org/deeter.t/micropq/1995mic.htm)</p>
<p>@bluewatermelon: Do you have the correct answer for that question? I think it’s A.</p>
<p>Is barrons good for review?</p>
<p>wow iam never going to self study a test in 2 days again…so tired</p>
<p>Expansionary Monetary Policy:</p>
<p>Money Supply goes up (nominal GDP will rise).
Y or Real GDP shifts to the right/goes up (real GDP will rise).</p>
<p>Answer is A, just confirming mathematicism answer with a little more detail.
I would suggest learning monetary/fiscal policy! :)</p>
<p>Under rational expectations, an announced expansion in the money supply will change nominal and real gross domestic GDP in which of the following ways?</p>
<p>Nominal GDP / Real GDP
A. Increase/increase
B. Increase/decrease
C. increase/no change
D. no change/ decrease
E. no change/ no change</p>
<p>the answer was c. I don’t understand why…</p>
<p>also, does anyone actually have the 1995 micro or 2005 micro mc?</p>
<p>^that is wrong. i would suggest studying rational expectations theory.</p>
<p>rational expectations theorists assume that the public can anticipate the change in money supply. since they know there will be more money, they will start demanding higher wages and such before the change even occurs. AS will then shift left as prices and wages rise, while the simultaneous increase in money supply will have its normal affect of increasing AD. in the end, real gdp does not change. (imagine the described shift of those two curves in your head and you should be able to see why C is the answer)</p>
<p>Answer is C b/c the people are expecting the money supply change so they adjust accordingly.
Nominal goes up b/c price level goes up.
Real stays the same b/c everything is relatively equal</p>
<p>^ ohhh, true that. i was going to say A too. uck, exam in 1 hour :(</p>
<p>sup guys, just woke up :)</p>