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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. 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.






2. 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).






3. Anything that shows the economy as a whole.






4. 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.






5. Not significantly responsive to changes in price.






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






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






8. A shift of the demand curve resulting from a change in consumer taste and preferences.






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






10. 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.






11. Long- run aggregate supply curve






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






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






14. 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.






15. 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.






16. Real cost of an item is its opportunity cost.






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






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






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






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






21. The lowest point of a business cycle






22. Anything that can be used to produce something else






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






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






25. 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).






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






27. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






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






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






31. 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.






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






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






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






35. A special tax imposed on imported goods.






36. 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






37. Significantly responsive to a change in price.






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






39. 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






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






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






42. 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






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






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






45. 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






46. The transition point between economic recession and recovery.






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






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






49. The effort of workers.






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