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






2. 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






3. The effort of workers.






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






5. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






6. Significantly responsive to a change in price.






7. Fluctuations in real GDP around the trend value; also called economic fluctuations.






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






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






10. The transition point between economic recession and recovery.






11. Short-run aggregate supply curve






12. The highest point of a business cycle.






13. 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.






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






15. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






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






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






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






19. 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.






20. 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






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






22. 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






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






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






25. The dollar value of all the goods and services sold to house holds.






26. 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.






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






28. An increase in the price level






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






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






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






32. 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.






33. A bad depressingly prolonged recession in economic activity.






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






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






36. 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.






37. Government officials make decisions about economy.






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






39. The study of scarcity and choice.






40. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






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






42. 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).






43. 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.






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






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






46. 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.






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






49. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






50. 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.