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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 long-run pattern of growth and recession.






2. 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.






3. 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.






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






5. The highest point of a business cycle.






6. 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.






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






8. 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.






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






10. 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.






11. 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).






12. 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.






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






14. 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.






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






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






17. 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.






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






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






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






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






22. The transition point between economic recession and recovery.






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






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






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






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






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






28. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.






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






30. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.






31. The lowest point of a business cycle






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






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






34. The amount of a good actually sold.






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






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






37. 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.






38. Consumer income rise - demand will rise.






39. 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?






40. 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.






41. A bad depressingly prolonged recession in economic activity.






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






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






44. 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






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






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






47. Short-run aggregate supply curve






48. 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).






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






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