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






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






3. The effort of workers.






4. 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).






5. A movement along the demand curve in response to a change in price - ceteris paribus; change in price means move along the demand curve; movement = money.






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






7. Significantly responsive to a change in price.






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






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






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






11. A bad depressingly prolonged recession in economic activity.






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






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






14. 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.






15. 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.






16. The income of households after taxes have been paid






17. 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






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






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






20. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






21. 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.






22. 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.






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






24. A curve defining the relationship between real production and price level.






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






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






27. The addition to total revenue created by selling one additional unit of ouput.






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






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






30. Consumer income rise - demand will rise.






31. 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.






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






33. The transition point between economic recession and recovery.






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






35. The lowest point of a business cycle






36. 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.






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






38. The payment that capital receives in the factor market.






39. An increase in the price level






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






41. 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.






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






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






44. 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.






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






46. A Latin phrase meaning 'all things constant.'






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






48. Government officials make decisions about economy.






49. Short-run aggregate supply curve






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