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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. Anything that can be used to produce something else






2. Significantly responsive to a change in price.






3. 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.






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






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






6. 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.






7. 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?






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






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






10. 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.






11. Anything that shows the economy as a whole.






12. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.






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






14. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.






15. Short-run aggregate supply curve






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






17. The highest point of a business cycle.






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






19. 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.






20. 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






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






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






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






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






25. Consumer income rise - demand will rise.






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






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






28. The income of households after taxes have been paid






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






30. A curve defining the relationship between real production and price level.






31. A special tax imposed on imported goods.






32. The transition point between economic recession and recovery.






33. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.






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






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






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






37. 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.






38. 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.






39. Rising prices - across the board.






40. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






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






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






43. 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.






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






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






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






47. 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).






48. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






49. 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






50. 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).