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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 amount of a good actually sold.






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






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






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






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






6. Government officials make decisions about economy.






7. 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?






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






9. 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.






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






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






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






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






14. 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






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






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






17. The lowest point of a business cycle






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






19. 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).






20. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.






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






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






23. 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.






24. Short-run aggregate supply curve






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






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






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






28. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






29. 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.






30. An increase in the price level






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






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






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






34. 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






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






36. The willingness and ability of buyers to purchase a good or service.






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






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






39. 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.






40. Long- run aggregate supply curve






41. 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).






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






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






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






45. The income of households after taxes have been paid






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






47. 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.






48. 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.






49. A special tax imposed on imported goods.






50. 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).