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






2. 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.






3. 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






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






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






6. Short-run aggregate supply curve






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






8. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






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






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






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






12. Not significantly responsive to changes in price.






13. 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.






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






15. 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.






16. 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






17. 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.






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






19. The effort of workers.






20. 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).






21. Long- run aggregate supply curve






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






23. Anything that can be used to produce something else






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






25. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






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






27. A special tax imposed on imported goods.






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






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






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






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






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






33. The lowest point of a business cycle






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






35. 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.






36. A bad depressingly prolonged recession in economic activity.






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






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






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






40. Significantly responsive to a change in price.






41. The transition point between economic recession and recovery.






42. 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).






43. 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.






44. Rising prices - across the board.






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






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






47. 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.






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






49. 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.






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