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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. 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.






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






3. Government officials make decisions about economy.






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






5. The transition point between economic recession and recovery.






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






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






8. Anything that shows the economy as a whole.






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






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






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






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






13. The amount of a good actually sold.






14. 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).






15. 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.






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






17. 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.






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






19. Not significantly responsive to changes in price.






20. Rising prices - across the board.






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






22. 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.






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






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






25. An increase in the price level






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






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






28. 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.






29. 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.






30. Short-run aggregate supply curve






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






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






33. 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.






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






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. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






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






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






39. 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.






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






41. 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






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






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






44. 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).






45. 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.






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






47. 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






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






49. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






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