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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. Short-run aggregate supply curve






2. The amount of a good actually sold.






3. 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.






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






5. 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.






6. 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






7. 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.






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






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






10. 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?






11. 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






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






13. The income of households after taxes have been paid






14. 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.






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






16. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.






17. 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.






18. 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).






19. 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.






20. 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.






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






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






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






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






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






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






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






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






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






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






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






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






34. 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.






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






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






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






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






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






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






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






42. (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.






43. The dollar value of production by a country's citizens.






44. 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.






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






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






47. 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.






48. 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






49. 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).






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