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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 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).






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






3. 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






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






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






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






7. Short-run aggregate supply curve






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






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






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






11. The highest point of a business cycle.






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






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






14. 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.






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






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






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






18. 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.






19. A bad depressingly prolonged recession in economic activity.






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






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






22. Government officials make decisions about economy.






23. The income earned by households and profits earned by firms after subtracting.






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






25. 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.






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






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






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






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






31. Long- run aggregate supply curve






32. 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






33. 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.






34. Anything that can be used to produce something else






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






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






38. 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






39. 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.






40. 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).






41. 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.






42. 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.






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






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






45. Anything that shows the economy as a whole.






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






47. The study of scarcity and choice.






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






49. A special tax imposed on imported goods.






50. 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.