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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 highest point of a business cycle.






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






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






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






5. 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.






6. The transition point between economic recession and recovery.






7. 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.






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






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






11. 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.






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






13. 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).






14. The dollar value of production within a nation's border.






15. 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.






16. 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.






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






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






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






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






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






22. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






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






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






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






27. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.






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






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






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






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






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






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






34. 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.






35. 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.






36. Long- run aggregate supply curve






37. A special tax imposed on imported goods.






38. The income of households after taxes have been paid






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






40. Not significantly responsive to changes in price.






41. 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.






42. Government officials make decisions about economy.






43. Anything that can be used to produce something else






44. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.






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






46. 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






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






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






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






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