Test your basic knowledge |

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 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.






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






3. 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.






4. 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






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






6. The transition point between economic recession and recovery.






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






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






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






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






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






12. (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.






13. The effort of workers.






14. 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






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






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






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






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






19. 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.






20. 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).






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






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






23. Anything that shows the economy as a whole.






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






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






26. The amount of a good actually sold.






27. Consumer income rise - demand will rise.






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






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






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






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






32. 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.






33. 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).






34. 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.






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






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






37. The income of households after taxes have been paid






38. 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).






39. 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






40. 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






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






42. 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.






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






44. 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






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






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






47. 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.






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






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






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