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






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






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






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






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






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






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






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






9. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.






10. 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).






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






12. 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.






13. The study of scarcity and choice.






14. The deliberate control of the money supply by the Federal government.






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






16. 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.






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






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






19. Not significantly responsive to changes in price.






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






21. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.






22. 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).






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






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






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






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






27. 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.






28. Significantly responsive to a change in price.






29. Consumer income rise - demand will rise.






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






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






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






33. Short-run aggregate supply curve






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






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






36. 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.






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






38. The highest point of a business cycle.






39. 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.






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






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






42. The income of households after taxes have been paid






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






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






45. 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).






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






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






48. The lowest point of a business cycle






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






50. Long- run aggregate supply curve