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AP Macroeconomics

Subjects : economics, ap
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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 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.

2. 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

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

4. An increase in the price level

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

6. The amount of a good actually sold.

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

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

9. 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.

10. Decisions by individuals about what to do and what not to do.

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

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

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

14. The lowest point of a business cycle

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

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

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

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

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

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

21. Long- run aggregate supply curve

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

23. Anything that shows the economy as a whole.

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

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

26. 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.

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

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

29. 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.

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

31. Short-run aggregate supply curve

32. 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.

33. 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.

34. A special tax imposed on imported goods.

35. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc

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

37. Significantly responsive to a change in price.

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

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

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

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

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

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

44. 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.

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

46. Restrictions on the quantity of a good that can be imported

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

48. 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

49. Government officials make decisions about economy.

50. 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.