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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. 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).






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






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






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






5. 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.






6. 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.






7. 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






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






9. (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.






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






11. A bad depressingly prolonged recession in economic activity.






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






13. 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.






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






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






16. The highest point of a business cycle.






17. 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






18. The income of households after taxes have been paid






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






20. Not significantly responsive to changes in price.






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






22. 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.






23. Consumer income rise - demand will rise.






24. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.






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






26. The amount of a good actually sold.






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






28. An increase in the price level






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






30. Government officials make decisions about economy.






31. 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.






32. The effort of workers.






33. 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.






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






35. 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.






36. 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.






37. 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.






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






39. 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.






40. The income earned by households and profits earned by firms after subtracting.






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






42. Long- run aggregate supply curve






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






44. 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.






45. 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.






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






47. The transition point between economic recession and recovery.






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






49. 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






50. The study of scarcity and choice.