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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. Anything that shows the economy as a whole.






2. 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.






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






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






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






6. Rising prices - across the board.






7. 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.






8. The highest point of a business cycle.






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






10. Anything that can be used to produce something else






11. 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.






12. 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.






13. The transition point between economic recession and recovery.






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






15. 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.






16. 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).






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






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






19. 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.






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






21. 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.






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






23. 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






24. 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.






25. 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?






26. Government officials make decisions about economy.






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






28. The income of households after taxes have been paid






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






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






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






32. 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






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






34. Short-run aggregate supply curve






35. 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






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






37. 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).






38. Not significantly responsive to changes in price.






39. 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.






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






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






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






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






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






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






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






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






48. 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






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






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