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






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






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






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






5. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.






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






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






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






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






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






11. 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.






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






13. 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).






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






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






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






17. The amount of a good actually sold.






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






19. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.






20. The income of households after taxes have been paid






21. The payment that capital receives in the factor market.






22. 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






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






24. 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).






25. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






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






27. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






29. Anything that can be used to produce something else






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






31. Significantly responsive to a change in price.






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






33. 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.






34. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






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






36. 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






37. The lowest point of a business cycle






38. 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.






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






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






41. Rising prices - across the board.






42. 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.






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






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






45. Consumer income rise - demand will rise.






46. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc






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






48. 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.






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






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