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






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






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






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






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






6. 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.






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






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






9. 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






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






11. (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.






12. 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.






13. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.






14. Significantly responsive to a change in price.






15. The income of households after taxes have been paid






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






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






19. Anything that shows the economy as a whole.






20. 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.






21. A bad depressingly prolonged recession in economic activity.






22. The effort of workers.






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






24. 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.






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






26. 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).






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






28. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






29. 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.






30. The study of scarcity and choice.






31. 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.






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






33. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.






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






35. Government officials make decisions about economy.






36. 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.






37. The lowest point of a business cycle






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






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






40. 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.






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






42. 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.






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






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






46. 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.






47. 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).






48. 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.






49. The highest point of a business cycle.






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