AP Daily Video 1 Topic 3.5, reveals a strategy called, "A.C.E." to follow when drawing a graph in AP Economics. Labeling all partsAxes, Curves, and Equilibrium pointsis veryimportant. The Equilibrium points on the AD_AS model includes the ____ along the y-axis and thequantity of _____ along the x-axis.

Your answer:
	Price Level; Real GDP
	Price; Quantity
	Price; Nominal GDP
	Inflation rate; goods and services

In video 1, when the PL is higher than the equilibrium PL how will the economy adjust to this disequilibrium?

Your answer:
	the surplus will be eliminated through rising price levels
	the surplus will be eliminated through decreasing price levels
	the shortage will be eliminated through rising price levels
	the shortage will be eliminated through decreasing price levels

In video 1, when the PL is lower the equilibrium price level how will the market adjust to eliminate the disequilibrium?

Your answer:
	quantities produced by the SRAS (firms) will decrease until equilibrium PL and Q are reached
	quantities produced by the SRAS (firms) will increase until equilibrium PL and Q are reached
	quantities demanded by spenders will increase until equilibrium is reached
	the shortage will persist until the government requires firms to raise their prices to reach

In video 1, when the PL is lower the equilibrium price level how will the market adjust to eliminate the disequilibrium (6:25)?

Your answer:
	quantities produced by the SRAS (firms) will decrease until equilibrium PL and Q are reached
	quantities produced by the SRAS (firms) will increase until equilibrium PL and Q are reached
	quantities demanded by spenders will increase until equilibrium is reached

In video 1, the AS_AS model illustrates long-run equilibrium by intersecting along the vertical______.

Your answer:
	long-run phillips curve
	long-run demand curve
	long-run supply curve
	long-run aggregate supply curve

In video 1, successfully draw the AD_AS model on scratch paper in long-run equilibrium. Now check your work (8:30 in the video). Did you draw it successfully?

Your answer:
	Yes
	No, I mislabeled the X-axis
	No, I mislabeled the Y-axis
	No, but I said yesbecause it would be silly not to get a point on this question by being honest about my mistake.

See Daily Video 2 on Topic 3.5. What is a short-run output gap?

Your answer:
	When the AS_AD curves intersect along the LRAS
	When the AS_AD curves intersect to the right or left of the LRAS
	When the AS_AD curves intersect along the Y-axis

In video 2, When current output (Y_C) is to the left of the full potential output (Y_F) the economy is experiencing:

Your answer:
	full employment long-run equilibrium
	an inflationary output gap
	a recessionary output gap
	equilibrium in the short-run always occurs along the LRAS curve

In video 2, When current output (Y_C) is to the left of the full potential output (Y_F) the economy is also likely experiencing:

Your answer:
	actual unemployment greater than full employment
	actual unemployment less than full employment
	rising price levels
	government increases in tax rates to slow down economic growth

When the SRAS increases because firms are more productive or access cheaper resources for production, the output gap shifts into inflationary range. This occurs to the ____of the vertical LRAS curve.

Your answer:
	right
	left
	along

When the output gap is negative and full employment output is greater than the current output, the unemployment rate is most likely (greater than, equal to, or less than) the natural rate of unemployment.

Your answer:
	greater than
	equal to
	less than

When the output gap is negative and full employment output is greater than the current output, the unemployment rate includes which types of unemployment? (see 4:40ish for help in Daily Video 2)

Your answer:
	frictional
	frictional + structural
	frictional + structural + cyclical
	only cyclical

Practice drawing an economy is a recession according to the AD_AS model (see prompt at 5:17 in video 2). Then, check your work (see solution at (5:34). Where was the short-run equilibrium point drawn relative to the LRAS curve?

Your answer:
	to the left
	to the right
	alongside the LRAS but slightly to the right