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






2. Long- run aggregate supply curve






3. 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.






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






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






6. Anything that shows the economy as a whole.






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






8. Not significantly responsive to changes in price.






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






10. 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.






11. A bad depressingly prolonged recession in economic activity.






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






13. A curve defining the relationship between real production and price level.






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






15. 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.






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






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






18. 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






19. The lowest point of a business cycle






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






21. Government officials make decisions about economy.






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






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. 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).






25. 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.






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






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






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






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






30. 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.






31. 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).






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






33. (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.






34. 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.






35. 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.






36. The income of households after taxes have been paid






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






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






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






41. A special tax imposed on imported goods.






42. 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).






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






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






45. 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.






46. 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






47. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






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






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






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