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






2. 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.






3. 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?






4. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc






5. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






6. 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.






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






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






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






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






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






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






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






15. The effort of workers.






16. The lowest point of a business cycle






17. 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.






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






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






20. 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).






21. 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






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






23. 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.






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






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






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






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






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






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






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






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






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






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






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






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






36. Government officials make decisions about economy.






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






38. 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.






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






40. Not significantly responsive to changes in price.






41. 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.






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






43. Rising prices - across the board.






44. Significantly responsive to a change in price.






45. 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.






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






47. 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.






48. Short-run aggregate supply curve






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






50. Long- run aggregate supply curve