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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. 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.






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






4. The study of scarcity and choice.






5. 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.






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






7. The highest point of a business cycle.






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






9. 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.






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






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






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






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






14. The lowest point of a business cycle






15. 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).






16. 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






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






18. 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.






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






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






21. Long- run aggregate supply curve






22. 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.






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






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






25. 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.






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






27. An increase in the price level






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






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






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. 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).






32. Expenditure by businesses on plant and equipment and the change in business invention.






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






34. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.






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






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






37. 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.






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






39. 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.






40. Short-run aggregate supply curve






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






42. (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.






43. 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.






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






45. 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






46. 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).






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






48. Government officials make decisions about economy.






49. 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.






50. Consumer income rise - demand will rise.