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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. (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.






2. 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.






3. The study of scarcity and choice.






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






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






6. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.






7. 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






8. 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).






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






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






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






12. 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.






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






14. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.






15. 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.






16. 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






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






18. 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.






19. 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).






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






21. 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.






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






23. Significantly responsive to a change in price.






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






25. 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






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






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






28. An increase in the price level






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






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






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






32. Anything that can be used to produce something else






33. The lowest point of a business cycle






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






35. 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.






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






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






38. A special tax imposed on imported goods.






39. Not significantly responsive to changes in price.






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






41. The amount of a good actually sold.






42. The income of households after taxes have been paid






43. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






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






45. 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.






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






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






48. 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.






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






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