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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 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






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






3. 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.






4. 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.






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






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






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






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






9. 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.






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






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






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






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






14. 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).






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






16. Not significantly responsive to changes in price.






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






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






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






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






21. Anything that shows the economy as a whole.






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






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






24. A bad depressingly prolonged recession in economic activity.






25. A special tax imposed on imported goods.






26. Decisions by individuals about what to do and what not to do.






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






28. 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






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






30. An industry structure in which there is only one seller for a product.






31. Government officials make decisions about economy.






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






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






34. 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.






35. 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.






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






37. 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.






38. 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






39. 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






40. Anything that can be used to produce something else






41. 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).






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






43. 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






44. The study of scarcity and choice.






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






46. 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?






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






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






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






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