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






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






3. 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.






4. Long- run aggregate supply curve






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






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. 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.






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






9. Anything that shows the economy as a whole.






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






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






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






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






14. 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






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






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






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






18. Anything that can be used to produce something else






19. 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.






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






22. 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).






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






24. 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.






25. Not significantly responsive to changes in price.






26. 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






27. 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.






28. 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.






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






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






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






32. 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.






33. (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.






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






35. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






36. A special tax imposed on imported goods.






37. 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






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






39. Government officials make decisions about economy.






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






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






42. 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.






43. The dollar value of goods and services sold to governments.






44. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






46. Rising prices - across the board.






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






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






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






50. Short-run aggregate supply curve