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






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






3. 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.






4. The study of scarcity and choice.






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






6. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






7. 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






8. Significantly responsive to a change in price.






9. 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






10. Fluctuations in real GDP around the trend value; also called economic fluctuations.






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






12. A bad depressingly prolonged recession in economic activity.






13. Consumer income rise - demand will rise.






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






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






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






17. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.






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






19. 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.






20. 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).






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






22. Short-run aggregate supply curve






23. The income of households after taxes have been paid






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






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






26. 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).






27. Anything that shows the economy as a whole.






28. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






29. 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.






30. 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.






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






32. Government officials make decisions about economy.






33. 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).






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






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






36. 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.






37. 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.






38. 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.






39. 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).






40. Rising prices - across the board.






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






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






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






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






45. 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.






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






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






48. 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.






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






50. Not significantly responsive to changes in price.