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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. Rising prices - across the board.






2. Short-run aggregate supply curve






3. Significantly responsive to a change in price.






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






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






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






7. 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.






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






9. 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






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






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






13. The transition point between economic recession and recovery.






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






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






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






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






18. A bad depressingly prolonged recession in economic activity.






19. Not significantly responsive to changes in price.






20. 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.






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






22. 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.






23. 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).






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






25. A movement along the demand curve in response to a change in price - ceteris paribus; change in price means move along the demand curve; movement = money.






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






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






28. 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.






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






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






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






32. Anything that can be used to produce something else






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






34. 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.






35. 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.






36. An increase in the price level






37. (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.






38. The amount of a good actually sold.






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






40. 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






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






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






43. 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?






44. 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.






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






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






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






48. 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.






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






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