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AP Macroeconomics
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Subjects
:
economics
,
ap
Instructions:
Answer 50 questions in 15 minutes.
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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
national income (NI)
structural unemployment
trough
labor force
2. The amount of money available to consumers to purchase goods and services.
change in quantity demanded
economic aggregates
perfectly elastic
purchasing power
3. 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.
inferior good
normal good
depression
demand-pull inflation
4. The dollar value of all the goods and services sold to house holds.
LRAS curv
demand
SRAS curve
consumption expenditures
5. An increase or decrease in consumer income will cause a shift in the Demand Curve.
change in quantity demanded
national economic accounts
consumer good
market economy
6. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
demand schedule
expenditure approach
disposable personal income
national income (NI)
7. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
depreciation
consumer good
susbtitute goods
monopoly
8. A relationship between two factors in which the factors move in the same direction.
aggregate demand curve
law of supply
import quotas
direct relationship
9. The income of households after taxes have been paid
number of composition of consumers
real GDP
economics
disposable personal income
10. The highest point of a business cycle.
trade surplus
total revenue
hyperinflation
peak
11. The proportion of each additional dollar of income that is saved.
price floor
aggregate supply curve
depreciation
Marginal Propensity to Save (MPS)
12. 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
real GDP
oligopoly
Phillips curve
command economy
13. 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.
quantity exchanged
inferior good
macroeconomics
Gross Domestic Product
14. 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.
consumer income rise
simple money multiplier
inferior good
recession
15. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
law of demand
hidden unemployment
fiscal policy
depreciation
16. The income earned by households and profits earned by firms after subtracting.
rule of 70
national income (NI)
demand schedule
business cycles
17. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
hyperinflation
A decrease in TR following an increase in price = elastic demand
law of supply
depreciation
18. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
consumer income rise
change in quantity demanded
LRAS curv
substitution effect
19. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
price index
inverse relationship
change in quantity demanded
market economy
20. Period in which a recession becomes prolonged and deep - involving high unemployment.
price index
depression
peak
business cycle
21. The dollar value of goods and services sold to governments.
government expenditures
price ceiling
perfectly elastic
consumer good
22. The deliberate control of the money supply by the Federal government.
elastic demand
consumer taste and preferences
monetary policy
aggregate supply curve
23. 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.
inelastic demand
monopoly
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
inverse relationship
24. 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.
elastic demand
expenditure approach
changes in consumer expectations
simple money multiplier
25. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
market equilibrium
inferior good
susbtitute goods
Labor
26. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
fiscal policy
law of demand
substitution effect
direct relationship
27. 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).
microeconomics
simple money multiplier
cost-push inflation
business cycles
28. A measure of the price level - or the average level of prices.
expansionary monetary policy
price index
market equilibrium
susbtitute goods
29. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
expansion
substitution effect
required reserve ratio (RRR)
trade surplus
30. 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.
import quotas
simple money multiplier
law of supply
cost-push inflation
31. Restrictions on the quantity of a good that can be imported
individual choice
monetary policy
trough
import quotas
32. (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.
number of composition of consumers
quantity exchanged
simple money multiplier
unit elastic
33. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.
oligopoly
resource
aggregate demand curve
peak
34. A Latin phrase meaning 'all things constant.'
inflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
interest
demand
35. 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.
labor force
total revenue
unemployed
unemployment rate
36. Anything that can be used to produce something else
simple money multiplier
resource
demand curve shifts
direct relationship
37. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
required reserve ratio (RRR)
labor force
substitution effect
cyclical unemployment
38. 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
resource
peak
expansionary monetary policy
entrepreneurship
39. Real cost of an item is its opportunity cost.
inelastic
opportunity cost
marginal revenue
LRAS curv
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.
change in quantity demanded
oligopoly
individual choice
hidden unemployment
41. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
demand-pull inflation
money multiplier
diminishing marginal utility
expansion
42. The sum of all the quantities of a good supplies by all producers at each price.
Phillips curve
direct relationship
market supply curve
labor force
43. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
depression
national economic accounts
expansion
entrepreneurship
44. 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.
direct relationship
opportunity cost
perfectly elastic
complimentary goods
45. The payment that capital receives in the factor market.
interest
individual choice
demand schedule
consumer surplus
46. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
demand curve shifts
national economic accounts
elastic demand
macroeconomics
47. When the percent of change in the quantity demanded equals the percent of change in price.
tariff
unit elastic
inflation
Phillips curve
48. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
market supply curve
change in quantity demanded
land
49. The addition to total revenue created by selling one additional unit of ouput.
elastic
expenditure approach
hyperinflation
marginal revenue
50. 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
rule of 70
command economy
law of demand
inferior good
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