AP Macroeconomics Flashcards: Changes in the AD-AS Model in the Short Run
Written by AP Content Team, Verified for 2026 AP Exams, Last updated: May 2026
Review key ideas with interactive flashcards. This set includes 10 cards to help you master important concepts.
What is the short-run effect of a positive shock to Short-Run Aggregate Supply (SRAS)?
In the short run, a positive shock to SRAS causes output and employment to rise, and the price level to fall.
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What is the short-run effect of a positive shock to Short-Run Aggregate Supply (SRAS)?
In the short run, a positive shock to SRAS causes output and employment to rise, and the price level to fall.
What is the short-run effect of a negative shock to Aggregate Demand (AD)?
In the short run, a negative shock to AD causes output, employment, and the price level to fall.
Which type of economic shock causes the price level, output, and employment to all move in the same direction in the short run?
A shock to Aggregate Demand (AD) causes output, employment, and the price level to all move in the same direction.
If consumer confidence plummets, causing a decrease in spending, what happens to the economy in the short run?
This is a negative AD shock, causing output, employment, and the price level to fall in the short run.
Which type of economic shock causes the price level and output to move in opposite directions in the short run?
A shock to the Short-Run Aggregate Supply (SRAS) causes output and the price level to move in opposite directions.
What is the short-run effect of a positive shock to Aggregate Demand (AD)?
In the short run, a positive shock to AD causes output, employment, and the price level to rise.
What is demand-pull inflation?
Demand-pull inflation is a rise in the price level caused by a positive shock or increase in aggregate demand.
If a new technology increases worker productivity, what is the short-run impact on output, employment, and the price level?
This represents a positive SRAS shock, which causes output and employment to rise and the price level to fall in the short run.
What is cost-push inflation?
Cost-push inflation is a rise in the price level caused by a negative shock or decrease in aggregate supply.
What is the short-run effect of a negative shock to Short-Run Aggregate Supply (SRAS)?
In the short run, a negative shock to SRAS causes output and employment to fall, and the price level to rise.