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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. 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.






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






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






4. The amount of a good actually sold.






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






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






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






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






9. 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.






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






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






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






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






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






15. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.






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






17. 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






18. An industry structure in which there is only one seller for a product.






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






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






21. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






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






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 lowest point of a business cycle






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






26. 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.






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






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






29. Long- run aggregate supply curve






30. 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






31. The cost of something in terms of what one must give up to get it.






32. 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






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






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






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






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






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






38. Government officials make decisions about economy.






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






40. Rising prices - across the board.






41. 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.






42. 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).






43. 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.






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






45. A bad depressingly prolonged recession in economic activity.






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






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






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






49. The highest point of a business cycle.






50. Anything that shows the economy as a whole.