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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. 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.






2. Anything that shows the economy as a whole.






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






4. 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.






5. 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.






6. 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






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






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






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






10. Government officials make decisions about economy.






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






12. 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).






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






14. 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.






15. 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






16. Period in which a recession becomes prolonged and deep - involving high unemployment.






17. 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.






18. 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.






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






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






21. The study of scarcity and choice.






22. 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






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






24. 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.






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






26. 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.






27. 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.






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






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






30. Consumer income rise - demand will rise.






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






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






33. The transition point between economic recession and recovery.






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






35. 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.






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






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






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






39. 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?






40. 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).






41. 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






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






43. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






44. The addition to total revenue created by selling one additional unit of ouput.






45. An increase in the price level






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






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






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






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






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