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






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






3. Not significantly responsive to changes in price.






4. Rising prices - across the board.






5. 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






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






7. Real cost of an item is its opportunity cost.






8. 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.






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






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






11. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






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






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






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






15. A Latin phrase meaning 'all things constant.'






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






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






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






19. 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).






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






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






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






23. 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.






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






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






26. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






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






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






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






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






32. 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






33. 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






34. The amount of a good actually sold.






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






36. Anything that shows the economy as a whole.






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






38. Consumer income rise - demand will rise.






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






40. Significantly responsive to a change in price.






41. The lowest point of a business cycle






42. The sum of all the quantities of a good supplies by all producers at each price.






43. 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.






44. 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.






45. The highest point of a business cycle.






46. Long- run aggregate supply curve






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






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






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






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