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AP Macroeconomics 5.7 Public Policy and Economic Growth Questions

Practise comparing public investments and supply-side incentives, then trace their short-run demand and supply effects and their long-run impact on productive capacity.

Syllabus
Effective Fall 2022
Course
AP Macroeconomics

Exam points

  • evaluate education, infrastructure, or R&D spending by tracing productivity and capacity effects
  • explain how tax cuts, credits, or subsidies alter incentives to work, save, invest, and accumulate capital
  • show supply-side policies shifting AD and SRAS in the short run and LRAS or potential output in the long run
  • select a growth-promoting policy by distinguishing productive investment from transfers or consumption support

Covered syllabus points

POL-4.A—a. Explain (using graphs as appropriate) public policies aimed at influencing long-run economic growth. b. Define supply-side…

Question 1

[Maximum number: 1]

The table below shows macroeconomic data for Country A.

Table for Question 1 — AP Macroeconomics

How would an increase in government spending on education affect economic growth in Country A? Explain.

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