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






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






3. Goods that go together - if price ? the demand for both that good and complimentary good ?.






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






5. 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).






6. The transition point between economic recession and recovery.






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






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






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






10. The income of households after taxes have been paid






11. The amount of a good actually sold.






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






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






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






15. An increase in the price level






16. 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.






17. 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.






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






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






20. The lowest point of a business cycle






21. The effort of workers.






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






23. Government officials make decisions about economy.






24. 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.






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






26. Rising prices - across the board.






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






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






29. The study of scarcity and choice.






30. The highest point of a business cycle.






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






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






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






34. Anything that can be used to produce something else






35. 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.






36. 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.






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






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






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






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






41. 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






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






43. 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.






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






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






46. Fluctuations in real GDP around the trend value; also called economic fluctuations.






47. 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.






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






49. Short-run aggregate supply curve






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