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






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






3. 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).






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






5. 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.






6. 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






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






8. 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).






9. 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






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






11. 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).






12. The highest point of a business cycle.






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






14. 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.






15. 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.






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






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






18. The amount of a good actually sold.






19. A bad depressingly prolonged recession in economic activity.






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






21. Anything that shows the economy as a whole.






22. 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.






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






24. 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?






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






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






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






28. Short-run aggregate supply curve






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






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






31. Rising prices - across the board.






32. 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.






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






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






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






36. 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.






37. An increase in the price level






38. Consumer income rise - demand will rise.






39. A person who has been unemployed and searching for a job for so long - that they have given up on finding a job and therefore forfeit unemployment.






40. The study of scarcity and choice.






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






42. 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.






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






44. 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.






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






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






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






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






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






50. 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