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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. 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.






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






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






4. 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).






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






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






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






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






9. Short-run aggregate supply curve






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






11. Government officials make decisions about economy.






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






13. An increase in the price level






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






15. 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.






16. 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.






17. 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






18. 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.






19. 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.






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






21. The amount of a good actually sold.






22. 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.






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






24. The transition point between economic recession and recovery.






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






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






27. 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






28. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






29. 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.






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






31. 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.






32. The lowest point of a business cycle






33. Consumer income rise - demand will rise.






34. The effort of workers.






35. Rising prices - across the board.






36. Anything that can be used to produce something else






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






38. The income of households after taxes have been paid






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






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






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






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






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






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






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






46. 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.






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






48. 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






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






50. Real cost of an item is its opportunity cost.