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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 dollar value of goods and services sold to governments.






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






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






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






5. 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).






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






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






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






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






10. 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






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






12. 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.






13. 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.






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






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






16. 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






17. 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.






18. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






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






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






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






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






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






24. The long-run pattern of growth and recession.






25. 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.






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






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






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






29. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.






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






31. 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).






32. 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?






33. The transition point between economic recession and recovery.






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






35. Significantly responsive to a change in price.






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






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






38. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.






39. 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.






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






41. Rising prices - across the board.






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






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






44. 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.






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






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






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






48. 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.






49. 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.






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