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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 income of households after taxes have been paid






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






3. 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






4. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.






5. Consumer income rise - demand will rise.






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






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






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






9. Rising prices - across the board.






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






11. The transition point between economic recession and recovery.






12. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






13. 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).






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






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






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






17. 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.






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






19. The lowest point of a business cycle






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






21. 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).






22. A bad depressingly prolonged recession in economic activity.






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






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






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






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






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






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






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






30. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






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






33. 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.






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






35. 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.






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






37. 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






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






39. (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.






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






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






42. 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).






43. 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.






44. 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.






45. Significantly responsive to a change in price.






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






47. A special tax imposed on imported goods.






48. Anything that shows the economy as a whole.






49. Not significantly responsive to changes in price.






50. 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.