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






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






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






6. 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.






7. A special tax imposed on imported goods.






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






9. 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.






10. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






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






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






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






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






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






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






18. 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.






19. Significantly responsive to a change in price.






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






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






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






23. Anything that shows the economy as a whole.






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






25. The effort of workers.






26. 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






27. 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.






28. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.






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






30. 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






31. Government officials make decisions about economy.






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






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






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






35. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






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






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






38. The income of households after taxes have been paid






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






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






41. The lowest point of a business cycle






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






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






44. 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.






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






46. 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






47. The amount of money available to consumers to purchase goods and services.






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






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






50. 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