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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 dollar value of goods and services sold to governments.






2. 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.






3. The study of scarcity and choice.






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






5. 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.






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






7. A special tax imposed on imported goods.






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






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






10. 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).






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






12. 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).






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






14. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






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






16. (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.






17. A bad depressingly prolonged recession in economic activity.






18. 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.






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






20. 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.






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






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






23. 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.






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






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






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






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






28. Rising prices - across the board.






29. A curve defining the relationship between real production and price level.






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






31. 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.






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






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






34. 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






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






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






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






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






39. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






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






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






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






43. Long- run aggregate supply curve






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






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






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






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






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






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






50. 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.