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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 amount of a good actually sold.






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






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






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






5. The effort of workers.






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






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






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






9. Not significantly responsive to changes in price.






10. 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.






11. 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






12. 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).






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






14. Anything that can be used to produce something else






15. 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.






16. The income of households after taxes have been paid






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






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






19. 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.






20. 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






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






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






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






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






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






26. Rising prices - across the board.






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






28. A special tax imposed on imported goods.






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






30. 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.






31. 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






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






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






34. Anything that shows the economy as a whole.






35. Significantly responsive to a change in price.






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






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






38. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.






39. Government officials make decisions about economy.






40. 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?






41. 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.






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






43. 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).






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






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






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






47. Short-run aggregate supply curve






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






49. 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.






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