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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 payment that capital receives in the factor market.






2. The lowest point of a business cycle






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. The highest point of a business cycle.






5. 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).






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






7. A special tax imposed on imported goods.






8. 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.






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






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






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






12. The transition point between economic recession and recovery.






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






14. 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.






15. The study of scarcity and choice.






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






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






18. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






19. 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






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






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






22. 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.






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






24. A person who has been unemployed and searching for a job for so long - that they have given up on finding a job and therefore forfeit unemployment.






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. Long- run aggregate supply curve






27. Anything that shows the economy as a whole.






28. Anything that can be used to produce something else






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






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






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






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






33. 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.






34. Government officials make decisions about economy.






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






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






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






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






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






40. 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.






41. Not significantly responsive to changes in price.






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






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






44. A bad depressingly prolonged recession in economic activity.






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






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






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






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






49. 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.






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







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