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Marlow Works

AP Macroeconomics / Unit 5

Unit 5 · 20–30%

Long-Run Consequences of Stabilization Policies

Policy that helps in the short run can change inflation, growth, and debt later.

Start first lessonUnit practice

Topics

  • Long-run adjustment in AD-AS
  • Inflation and unemployment trade-offs
  • Quantity theory of money
  • Public debt and deficits
  • Sources of long-run growth

Lessons

Key terms

Original practice

Marlow Works questions. If this unit does not have its own items yet, you will see other questions from the same course.

1 of 1Long-Run Consequences of Stabilization Policies · hard · free response

Suppose the economy is at long-run equilibrium and the central bank unexpectedly increases the money supply. In a short essay, describe the short-run effects on interest rates, investment, and output, then explain the long-run adjustment of the price level and real output.

Original Marlow Works item — not a College Board question.

Take your time—this is practice, not a test.

Review checklist

  1. 01Show wage adjustment that returns output to potential.
  2. 02Separate a short-run Phillips movement from a long-run vertical story.
  3. 03Name one supply-side factor that can shift LRAS.

Related resources

External links with reuse status. Marlow Works is independent and does not copy restricted exam or textbook material.

  • Official / link only

    AP Macroeconomics course page

    Official six-unit framework for national income and policy models.

    College Board · All rights reserved · accessed 2026-10-01

    Open source

  • Official / link only

    FRED economic data

    Federal Reserve economic data. Terms vary by series; do not scrape or ingest.

    Federal Reserve Bank of St. Louis · Varies by series · accessed 2026-10-01

    Open source