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






2. The lowest point of a business cycle






3. Significantly responsive to a change in price.






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






5. 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.






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






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






8. 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






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






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






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






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






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






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






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






16. The income of households after taxes have been paid






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






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






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






20. 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.






21. 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).






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






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






24. 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.






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






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






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






28. 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.






29. Short-run aggregate supply curve






30. 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.






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






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






33. 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.






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






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






36. 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).






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






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






39. The effort of workers.






40. 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.






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






42. The highest point of a business cycle.






43. 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.






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






45. An increase in the price level






46. 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).






47. 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.






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






49. Not significantly responsive to changes in price.






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