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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 effort of workers.






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






3. 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






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






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






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






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






8. 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.






9. 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.






10. The price of a domestic currency in terms of a foreign currency.






11. The highest point of a business cycle.






12. 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.






13. (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.






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






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






16. 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.






17. The transition point between economic recession and recovery.






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






19. 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).






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






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






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






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






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






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






26. 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).






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






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






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






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






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






32. 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.






33. 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.






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






35. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






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






38. 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






39. 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.






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






41. Rising prices - across the board.






42. The amount of a good actually sold.






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






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






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






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






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






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






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






50. 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