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






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






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






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






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






6. 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.






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






8. 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.






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






10. 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.






11. A special tax imposed on imported goods.






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






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






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






15. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






16. 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.






17. Consumer income rise - demand will rise.






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






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






20. 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?






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






22. 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.






23. 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.






24. Not significantly responsive to changes in price.






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






26. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






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






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






30. 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






31. 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.






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






33. The lowest point of a business cycle






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






35. 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.






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






37. The effort of workers.






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






39. Long- run aggregate supply curve






40. 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.






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






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






43. A bad depressingly prolonged recession in economic activity.






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






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






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






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






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






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






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






Can you answer 50 questions in 15 minutes?



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