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AP Macroeconomics
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Subjects
:
economics
,
ap
Instructions:
Answer 50 questions in 15 minutes.
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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. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
Gross Domestic Product
SRAS curve
law of demand
demand curve
2. Consumer income rise - demand will rise.
market economy
change in quantity demanded
neutral good
cost-push inflation
3. 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
opportunity cost
labor force
oligopoly
law of demand
4. 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.
labor force
depression
susbtitute goods
investment expenditures
5. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
entrepreneurship
national income (NI)
economic aggregates
expansion
6. The payment that capital receives in the factor market.
susbtitute goods
interest
diminishing marginal utility
disposable personal income
7. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
peak
depression
inverse relationship
expansionary monetary policy
8. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
expansionary fiscal policy
trade surplus
monopoly
market economy
9. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
expenditure approach
expansion
aggregate demand curve
money multiplier
10. 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.
command economy
simple money multiplier
scarce
fiscal policy
11. The amount of money available to consumers to purchase goods and services.
A decrease in TR following an increase in price = elastic demand
purchasing power
trough
simple money multiplier
12. Price control set when the market price is believed to be too high.
price ceiling
market economy
nominal GDP
cost-push inflation
13. Short-run aggregate supply curve
fiscal policy
susbtitute goods
SRAS curve
cyclical unemployment
14. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
hidden unemployment
consumer income rise
demand
Phillips curve
15. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
land
depreciation
law of supply
demand schedule
16. Decisions by individuals about what to do and what not to do.
expenditure approach
trade deficit
individual choice
price floor
17. A special tax imposed on imported goods.
Marginal Propensity to Save (MPS)
Gross National Product
depreciation
tariff
18. 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.
structural unemployment
command economy
demand curve shifts
demand-pull inflation
19. A curve defining the relationship between real production and price level.
aggregate supply curve
law of demand
normal good
expansionary monetary policy
20. The deliberate control of the money supply by the Federal government.
number of composition of consumers
inelastic demand
monetary policy
substitution effect
21. 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).
business cycles
opportunity cost
unemployment rate
import quotas
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.
trough
depression
inflation
elastic demand
23. The lowest point of a business cycle
unit elastic
trough
recession
entrepreneurship
24. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
neutral good
Gross Domestic Product
cyclical unemployment
inelastic
25. 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
elastic demand
structural unemployment
consumer income rise
real GDP
26. The income of households after taxes have been paid
unemployment rate
disposable personal income
opportunity cost
changes in consumer expectations
27. Price control set when the market price is believed to be too low.
price floor
LRAS curv
inelastic
frictional unemployment
28. 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.
labor force
inelastic
business cycle
inelastic demand
29. The sum of all the quantities of a good supplies by all producers at each price.
demand-pull inflation
scarcity
oligopoly
market supply curve
30. Period in which a recession becomes prolonged and deep - involving high unemployment.
national economic accounts
depression
investment expenditures
national income (NI)
31. 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
consumer good
nominal GDP
required reserve ratio (RRR)
SRAS curve
32. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
movement along a demand curve
complimentary goods
scarce
consumer surplus
33. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
real GDP
national economic accounts
price index
monetary policy
34. The proportion of each additional dollar of income that will go toward consumption expenditures.
elastic demand
marginal propensity to consume (MPC)
marginal revenue
hyperinflation
35. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
fiscal policy
diminishing marginal utility
substitution effect
import quotas
36. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
movement along a demand curve
change in quantity demanded
normal good
demand-pull inflation
37. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
opportunity cost
complimentary goods
quantity exchanged
38. 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).
expansionary fiscal policy
demand-pull inflation
labor force
demand curve shifts
39. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
investment expenditures
substitution effect
normal good
marginal revenue
40. Restrictions on the quantity of a good that can be imported
import quotas
cost-push inflation
SRAS curve
marginal propensity to consume (MPC)
41. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
structural unemployment
depression
market equilibrium
Labor
42. Rising prices - across the board.
economics
law of demand
inflation
opportunity cost
43. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
inflation
recession
stagflation
A decrease in TR following an increase in price = elastic demand
44. The transition point between economic recession and recovery.
trough
susbtitute goods
inelastic
depression
45. An increase in the price level
movement along a demand curve
inflation
SRAS curve
demand elasticity
46. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
hyperinflation
opportunity cost
expenditure approach
frictional unemployment
47. (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.
disposable personal income
number of composition of consumers
market equilibrium
oligopoly
48. The dollar value of production within a nation's border.
opportunity cost
Gross Domestic Product
economic aggregates
hidden unemployment
49. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.
LRAS curv
price index
total revenue
stagflation
50. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
consumer surplus
Gross Domestic Product
perfectly elastic
scarcity
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