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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.






2. The sum of all the quantities of a good supplies by all producers at each price.






3. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






4. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.






5. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.






6. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.






7. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






8. Significantly responsive to a change in price.






9. An increase or decrease in consumer income will cause a shift in the Demand Curve.






10. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.






11. The price of a domestic currency in terms of a foreign currency.






12. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.






13. The lowest point of a business cycle






14. Period in which a recession becomes prolonged and deep - involving high unemployment.






15. Fluctuations in real GDP around the trend value; also called economic fluctuations.






16. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






17. The long-run pattern of growth and recession.






18. The payment that capital receives in the factor market.






19. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.






20. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






21. Anything that can be used to produce something else






22. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






23. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






24. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.






25. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






26. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.






27. The dollar value of production by a country's citizens.






28. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.






29. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






30. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.






31. The income earned by households and profits earned by firms after subtracting.






32. An increase in the price level






33. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






34. The effort of workers.






35. A person who has been unemployed and searching for a job for so long - that they have given up on finding a job and therefore forfeit unemployment.






36. Goods that compete with one another. If the price for one goes up the demand for the other will go up.






37. A relationship between two factors in which the factors move in the same direction.






38. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






39. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






40. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






41. The deliberate control of the money supply by the Federal government.






42. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






43. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






44. The addition to total revenue created by selling one additional unit of ouput.






45. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






46. The highest point of a business cycle.






47. A measure of the price level - or the average level of prices.






48. The dollar value of all the goods and services sold to house holds.






49. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






50. The amount of a good actually sold.