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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 lowest point of a business cycle






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






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






4. 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






5. 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.






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






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






8. 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.






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






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






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






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






13. 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.






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






15. Consumer income rise - demand will rise.






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






17. 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






18. The study of scarcity and choice.






19. Not significantly responsive to changes in price.






20. 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.






21. 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.






22. 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






23. A bad depressingly prolonged recession in economic activity.






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






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






26. The transition point between economic recession and recovery.






27. 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.






28. The highest point of a business cycle.






29. 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?






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






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






32. Government officials make decisions about economy.






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






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






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






36. Anything that shows the economy as a whole.






37. A curve defining the relationship between real production and price level.






38. The effort of workers.






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






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






41. 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.






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






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






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






45. 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.






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






47. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






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






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






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