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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






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






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






4. 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.






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






6. 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






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






8. The amount of a good actually sold.






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






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






11. 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.






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. A Latin phrase meaning 'all things constant.'






14. A special tax imposed on imported goods.






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






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






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






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






19. The transition point between economic recession and recovery.






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






21. 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.






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






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






24. 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.






25. The effort of workers.






26. 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






27. A curve defining the relationship between real production and price level.






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






29. 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.






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






31. The highest point of a business cycle.






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






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






34. 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.






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






36. The lowest point of a business cycle






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






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






39. Period in which a recession becomes prolonged and deep - involving high unemployment.






40. 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.






41. 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).






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






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






44. 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.






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






46. 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






47. The study of scarcity and choice.






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






49. 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.






50. The income of households after taxes have been paid







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