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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. The long-run pattern of growth and recession.






2. A movement along the demand curve in response to a change in price - ceteris paribus; change in price means move along the demand curve; movement = money.






3. 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






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






5. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






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






7. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






8. The dollar value of production within a nation's border.






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






10. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc






11. An industry structure in which there is only one seller for a product.






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






13. The proportion of each additional dollar of income that is saved.






14. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.






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






16. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.






17. 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.






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






19. 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






20. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.






21. (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.






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






23. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.






24. The dollar value of goods and services sold to governments.






25. A good for which there is less demand as income rises; a good the demand for which falls as income rises and rises as income falls; consumer income rises while demand decreases.






26. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






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






28. A shift of the demand curve resulting from a change in consumer taste and preferences.






29. The lowest point of a business cycle






30. A Latin phrase meaning 'all things constant.'






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






32. Anything that shows the economy as a whole.






33. Expenditure by businesses on plant and equipment and the change in business invention.






34. The amount of a good actually sold.






35. The effort of workers.






36. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






37. A way of measuring the GDP by adding up all spending on final goods and services during a given year.






38. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






39. Short-run aggregate supply curve






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






41. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.






42. The transition point between economic recession and recovery.






43. 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?






44. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






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






46. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






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






48. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






49. 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.






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