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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. 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.






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






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






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






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






6. 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.






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






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






9. Government officials make decisions about economy.






10. 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.






11. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






12. 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).






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






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






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






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






17. 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






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






19. 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.






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






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






22. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






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






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






25. 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.






26. The dollar value of goods and services sold to governments.






27. 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?






28. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






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






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






31. 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.






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






33. 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.






34. 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






35. A bad depressingly prolonged recession in economic activity.






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






37. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.






38. The effort of workers.






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






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






41. Consumer income rise - demand will rise.






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






43. The income of households after taxes have been paid






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






45. Significantly responsive to a change in price.






46. Anything that shows the economy as a whole.






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






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






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






50. 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.