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






2. 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.






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






4. 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






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






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






7. Not significantly responsive to changes in price.






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






9. 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






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






11. Anything that shows the economy as a whole.






12. Rising prices - across the board.






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






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






15. Consumer income rise - demand will rise.






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






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






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






19. 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






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






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






22. 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.






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






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






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






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






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






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






30. 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.






31. 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.






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






33. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






34. The amount of a good actually sold.






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






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






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






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






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






40. The highest point of a business cycle.






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






42. 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).






43. The transition point between economic recession and recovery.






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






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






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






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






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






49. The income earned by households and profits earned by firms after subtracting.






50. 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).