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






2. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






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






4. The lowest point of a business cycle






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






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






7. 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.






8. Long- run aggregate supply curve






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






10. 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.






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






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






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






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






15. 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.






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






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






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






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






20. 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






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






22. 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).






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






24. Government officials make decisions about economy.






25. Not significantly responsive to changes in price.






26. Short-run aggregate supply curve






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






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






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






30. The study of scarcity and choice.






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






32. The amount of money available to consumers to purchase goods and services.






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






34. Anything that can be used to produce something else






35. The transition point between economic recession and recovery.






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






37. 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.






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






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






40. The amount of a good actually sold.






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






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






43. 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.






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






45. A bad depressingly prolonged recession in economic activity.






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






47. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






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






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






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