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






2. 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.






3. Short-run aggregate supply curve






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






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






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






7. The study of scarcity and choice.






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






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






10. 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.






11. 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






12. Not significantly responsive to changes in price.






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






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






16. The income of households after taxes have been paid






17. The highest point of a business cycle.






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






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






20. 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.






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






23. 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






24. The price of a domestic currency in terms of a foreign currency.






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






26. 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).






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






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






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






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






31. 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






32. Anything that shows the economy as a whole.






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






34. Significantly responsive to a change in price.






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






36. 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.






37. 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.






38. 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.






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






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






41. 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.






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






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






44. 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.






45. 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






46. (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.






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






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






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






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