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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. 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






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






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






4. The dollar value of goods and services sold to governments.






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






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






7. 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






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






9. Anything that shows the economy as a whole.






10. 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.






11. The amount of a good actually sold.






12. 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.






13. Government officials make decisions about economy.






14. 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.






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






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






17. 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.






18. 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).






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






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






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






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






23. 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.






24. A special tax imposed on imported goods.






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






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






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






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






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






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






31. 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.






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






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






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






35. The highest point of a business cycle.






36. A bad depressingly prolonged recession in economic activity.






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






38. The transition point between economic recession and recovery.






39. An increase or decrease in consumer income will cause a shift in the Demand Curve.






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






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






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






43. Significantly responsive to a change in price.






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






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






46. 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.






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






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






49. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






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