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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.
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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. 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.






2. 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.






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






4. 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.






5. Period in which a recession becomes prolonged and deep - involving high unemployment.






6. 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






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






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






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






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






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






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






13. 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






14. A bad depressingly prolonged recession in economic activity.






15. 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.






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






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






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






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






20. An increase in the price level






21. 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.






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






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






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






26. 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






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






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






29. The effort of workers.






30. Long- run aggregate supply curve






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






32. Short-run aggregate supply curve






33. An industry structure in which there is only one seller for a product.






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






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






36. Significantly responsive to a change in price.






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






38. (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.






39. 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).






40. The study of scarcity and choice.






41. 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.






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






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






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






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






46. Rising prices - across the board.






47. Government officials make decisions about economy.






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






49. 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






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







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