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






2. 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






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






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






5. 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






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






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






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






9. 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.






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






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






12. 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






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






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






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






16. 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






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






18. A bad depressingly prolonged recession in economic activity.






19. Not significantly responsive to changes in price.






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






21. Anything that shows the economy as a whole.






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






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






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






25. The income of households after taxes have been paid






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






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






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






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






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






31. 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.






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






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






34. Consumer income rise - demand will rise.






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






36. Government officials make decisions about economy.






37. The effort of workers.






38. Short-run aggregate supply curve






39. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






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






41. The study of scarcity and choice.






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






43. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.






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






45. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.






46. 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.






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






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






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






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