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The formula to calculate the expenditures or simple multiplier is.Short Run Aggregate Supply. a curve that shows the relationship between price level and rGDP produced by firms when wage costs are fixed. Long Run Aggregate Supply. is the relationship between Real GDP and the Price Level at full employment. Unemployment is at its natural rate. Aggregate Supply Graph. Shifts in the demand for labor leads to ...AP Microeconomics Unit 1: Basic Economic Concepts 1.1: Scarcity Economics: the study of scarcity and choice with unlimited wants and limited resources Economic choice: involves the personal choice of choosing one thing over another Scarcity: unlimited wants but limited resources (ex. time = limited supply) Free goods: goods with no-cost/unlimited supply (ex. sunlight)Practice. Free Response. Assessments. Overview. Looking for an AP® Microeconomics score calculator? Click here for this and more tips for your test! Standards. Tags. 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