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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. 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).






2. Rising prices - across the board.






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






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






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






6. Significantly responsive to a change in price.






7. 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.






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






9. 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.






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






11. 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






12. 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.






13. 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).






14. 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.






15. Anything that can be used to produce something else






16. The transition point between economic recession and recovery.






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






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






19. 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.






20. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






21. The income of households after taxes have been paid






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






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






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






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






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






27. Short-run aggregate supply curve






28. The study of scarcity and choice.






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






30. 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.






31. 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.






32. The lowest point of a business cycle






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






34. Government officials make decisions about economy.






35. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






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






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






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






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






41. The highest point of a business cycle.






42. A measure of the price level - or the average level of prices.






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






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






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






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






47. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc






48. The deliberate control of the money supply by the Federal government.






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






50. 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.







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