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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 bad depressingly prolonged recession in economic activity.






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






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






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






5. Goods that compete with one another. If the price for one goes up the demand for the other will go up.






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






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






8. Consumer income rise - demand will rise.






9. Anything that shows the economy as a whole.






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






11. 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).






12. 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.






13. 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.






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






15. 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






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






17. Rising prices - across the board.






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






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






20. The highest point of a business cycle.






21. 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






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






23. Long- run aggregate supply curve






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






25. 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.






26. The study of scarcity and choice.






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






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






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






30. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.






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






32. 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






33. An increase in the price level






34. 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.






35. Government officials make decisions about economy.






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






37. A special tax imposed on imported goods.






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






39. 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






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






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






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






43. The effort of workers.






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






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






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






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






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






49. 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.






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