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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 long-run pattern of growth and recession.






2. 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






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






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






5. 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.






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






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






8. 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.






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






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






11. 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






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






13. Consumer income rise - demand will rise.






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






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






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. An increase in the price level






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






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






20. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






21. 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).






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






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






24. 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.






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






26. The income of households after taxes have been paid






27. Significantly responsive to a change in price.






28. A way of measuring the GDP by adding up all spending on final goods and services during a given year.






29. 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.






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






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






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






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






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






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






36. 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.






37. 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.






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






39. 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






40. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.






41. Rising prices - across the board.






42. Short-run aggregate supply curve






43. Government officials make decisions about economy.






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






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






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






47. Price control set when the market price is believed to be too high.






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






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






50. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.