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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. Significantly responsive to a change in price.






2. The study of scarcity and choice.






3. 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.






4. The lowest point of a business cycle






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






6. 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.






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






8. 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.






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






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. 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.






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






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






15. 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.






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






17. 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






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






19. Government officials make decisions about economy.






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






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






22. Short-run aggregate supply curve






23. A bad depressingly prolonged recession in economic activity.






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






25. 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).






26. 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.






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






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






29. 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.






30. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.






31. 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.






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






33. 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.






34. The payment that capital receives in the factor market.






35. The effort of workers.






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






37. 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.






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






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






40. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






41. Consumer income rise - demand will rise.






42. Anything that shows the economy as a whole.






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






44. 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?






45. 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.






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






47. An increase in the price level






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






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






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







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