Tackle the Test: Free-Response Questions

1. Question

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   Rubric for FRQ 1 (12 points)

   

   1 point: Vertical axis labeled “Aggregate price level” (or “Price level”)

   1 point: Horizontal axis labeled “Real GDP”

   1 point: Downward-sloping curve labeled “AD” (or “AD₁”)

   1 point: AD curve shifted to the right

   1 point: Expectations

   1 point: Wealth

   1 point: Size of existing stock of physical capital

   1 point: Government policies

   1 point: Consumers/Producers more confident

   1 point: Increase in wealth

   1 point: Lower existing stock of physical capital

   1 point: An increase in government spending or in the money supply

2. Question

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