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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. The lowest point of a business cycle






2. 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.






3. The effort of workers.






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






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






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






7. Rising prices - across the board.






8. Decisions by individuals about what to do and what not to do.






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






10. 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.






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






12. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






13. 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.






14. 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






15. 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






16. Significantly responsive to a change in price.






17. The price of a domestic currency in terms of a foreign currency.






18. 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






19. Not significantly responsive to changes in price.






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






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






22. 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.






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






24. The amount of a good actually sold.






25. 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).






26. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






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






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






29. 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.






30. 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.






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






32. 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.






33. Anything that can be used to produce something else






34. The income of households after taxes have been paid






35. 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






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






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






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






39. 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).






40. The sum of all the quantities of a good supplies by all producers at each price.






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






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






43. 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.






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






45. 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.






46. Consumer income rise - demand will rise.






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






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






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






50. Long- run aggregate supply curve