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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. 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






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






3. 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






4. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






5. The transition point between economic recession and recovery.






6. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






7. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.






8. Significantly responsive to a change in price.






9. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.






10. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






11. 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






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






13. 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.






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






15. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.






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






17. An increase in the price level






18. The proportion of each additional dollar of income that will go toward consumption expenditures.






19. Short-run aggregate supply curve






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






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






22. 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.






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






24. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






25. A special tax imposed on imported goods.






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






27. When the percent of change in the quantity demanded equals the percent of change in price.






28. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






29. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.






30. The willingness and ability of buyers to purchase a good or service.






31. Anything that can be used to produce something else






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






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






34. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.






35. Real cost of an item is its opportunity cost.






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






37. The amount of money available to consumers to purchase goods and services.






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






39. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






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






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






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






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






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






45. 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.






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






47. 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?






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






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






50. 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