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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. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






2. 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






3. A special tax imposed on imported goods.






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






5. 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.






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






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






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






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






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






11. 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.






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






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






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






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






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






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






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






19. Rising prices - across the board.






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






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






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. 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






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






25. 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.






26. 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).






27. 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.






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






29. Short-run aggregate supply curve






30. The highest point of a business cycle.






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






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






33. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






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






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






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






37. The effort of workers.






38. 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






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






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






41. 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.






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






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






44. The income of households after taxes have been paid






45. The study of scarcity and choice.






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






47. 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.






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






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






50. The transition point between economic recession and recovery.