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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. Not significantly responsive to changes in price.






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






3. Government officials make decisions about economy.






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






5. 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.






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






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






8. 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.






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






10. The highest point of a business cycle.






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






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






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






14. A bad depressingly prolonged recession in economic activity.






15. 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






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






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






18. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






19. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.






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






21. The lowest point of a business cycle






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






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






24. 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.






25. Anything that shows the economy as a whole.






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






27. 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






28. 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?






29. 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.






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






31. 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.






32. The study of scarcity and choice.






33. 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.






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






35. An increase or decrease in consumer income will cause a shift in the Demand Curve.






36. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.






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






38. Rising prices - across the board.






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






40. 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






41. 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.






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






43. 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.






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






45. The dollar value of production within a nation's border.






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






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






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






49. The amount of a good actually sold.






50. 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.