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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.






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






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






4. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.






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






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






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






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






9. 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






10. Rising prices - across the board.






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






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






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






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






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






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






17. An increase in the price level






18. 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.






19. 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.






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






21. Real cost of an item is its opportunity cost.






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






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






24. A bad depressingly prolonged recession in economic activity.






25. (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.






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






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






28. Not significantly responsive to changes in price.






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






30. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.






31. 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.






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






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






34. The effort of workers.






35. 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






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






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






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






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






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






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






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






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






44. 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).






45. 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






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






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






48. The amount of a good actually sold.






49. 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.






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).







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