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






2. 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






3. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.






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






5. The lowest point of a business cycle






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






7. 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






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






9. Long- run aggregate supply curve






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






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






12. 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.






13. 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.






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






15. Fluctuations in real GDP around the trend value; also called economic fluctuations.






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






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






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






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






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






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






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






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. The effort of workers.






25. Anything that can be used to produce something else






26. 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.






27. Significantly responsive to a change in price.






28. 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.






29. 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






30. 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).






31. Anything that shows the economy as a whole.






32. Government officials make decisions about economy.






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






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






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






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






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






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






39. Short-run aggregate supply curve






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






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






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






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






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






45. 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






46. 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.






47. 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.






48. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






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






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