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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. 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.






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






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






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






5. The income of households after taxes have been paid






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






7. The amount of a good actually sold.






8. 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.






9. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






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






11. The dollar value of production by a country's citizens.






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






13. 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.






14. (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.






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






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






17. 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.






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






19. 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.






20. The transition point between economic recession and recovery.






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






22. 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






23. Government officials make decisions about economy.






24. 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.






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






26. 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.






27. 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






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






29. 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.






30. A bad depressingly prolonged recession in economic activity.






31. 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).






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






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






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






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






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






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






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






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






40. 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).






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






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






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






44. Price control set when the market price is believed to be too low.






45. A special tax imposed on imported goods.






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






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






48. Rising prices - across the board.






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






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