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






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






3. 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).






4. 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.






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






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






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






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






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






10. 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.






11. 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






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






13. The dollar value of production within a nation's border.






14. 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).






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






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






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






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






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






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






21. 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.






22. 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.






23. The effort of workers.






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






25. 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.






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






27. Short-run aggregate supply curve






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






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






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






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






32. 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






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






34. Fluctuations in real GDP around the trend value; also called economic fluctuations.






35. Not significantly responsive to changes in price.






36. An increase in the price level






37. 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






38. Government officials make decisions about economy.






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






40. 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.






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






42. 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






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






45. The income of households after taxes have been paid






46. 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.






47. The lowest point of a business cycle






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






49. The amount of a good actually sold.






50. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






Can you answer 50 questions in 15 minutes?



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