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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 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.






2. The effort of workers.






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






4. Short-run aggregate supply curve






5. 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.






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






7. An increase in the price level






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






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






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






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






12. 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






13. 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.






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






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






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






17. 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.






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






19. 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?






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






21. 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.






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






23. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.






24. 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






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. Anything that can be used to produce something else






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






28. 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.






29. (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.






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






31. The income of households after taxes have been paid






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






33. The transition point between economic recession and recovery.






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






35. Rising prices - across the board.






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






37. The study of scarcity and choice.






38. The amount of a good actually sold.






39. 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.






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






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






42. 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






43. The highest point of a business cycle.






44. 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.






45. A bad depressingly prolonged recession in economic activity.






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






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






48. The amount of money available to consumers to purchase goods and services.






49. Government officials make decisions about economy.






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