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






2. 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.






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






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






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






6. Not significantly responsive to changes in price.






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






9. 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.






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






11. The amount of a good actually sold.






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






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






14. 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.






15. 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






16. The effort of workers.






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. 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.






19. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






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






21. Consumer income rise - demand will rise.






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






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






24. The study of scarcity and choice.






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






26. 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.






27. 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






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






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






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






31. (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.






32. The lowest point of a business cycle






33. Anything that can be used to produce something else






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






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






36. 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.






37. Government officials make decisions about economy.






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






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






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






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






43. The highest point of a business cycle.






44. 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.






45. 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.






46. Long- run aggregate supply curve






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






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






49. A bad depressingly prolonged recession in economic activity.






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