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






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






3. 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.






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






5. 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.






6. 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).






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






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






9. 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).






10. Price control set when the market price is believed to be too high.






11. Consumer income rise - demand will rise.






12. The cost of something in terms of what one must give up to get it.






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






14. Anything that shows the economy as a whole.






15. The lowest point of a business cycle






16. 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?






17. 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






18. 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.






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






20. 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






21. 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






22. A bad depressingly prolonged recession in economic activity.






23. Government officials make decisions about economy.






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






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






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






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






28. 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.






29. Not significantly responsive to changes in price.






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






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






32. 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.






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






34. 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






35. The effort of workers.






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






37. The income of households after taxes have been paid






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






39. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.






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






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






42. Rising prices - across the board.






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






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






45. 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.






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






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






48. Price control set when the market price is believed to be too low.






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






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







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