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






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






3. 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.






4. 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).






5. Anything that shows the economy as a whole.






6. The study of scarcity and choice.






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






8. The income of households after taxes have been paid






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






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






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






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






13. Rising prices - across the board.






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






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






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






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






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






19. 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.






20. 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.






21. 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.






22. 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.






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






24. 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.






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






26. The amount of money available to consumers to purchase goods and services.






27. 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).






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






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






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






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






33. The dollar value of goods and services sold to governments.






34. 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.






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






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






37. The amount of a good actually sold.






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






39. 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.






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






41. 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.






42. Anything that can be used to produce something else






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






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






45. Not significantly responsive to changes in price.






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






47. The effort of workers.






48. 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.






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






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