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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. 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.






2. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






3. 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.






4. Anything that can be used to produce something else






5. 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.






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. Consumer income rise - demand will rise.






8. 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.






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






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






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






12. The highest point of a business cycle.






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






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






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






16. 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.






17. Significantly responsive to a change in price.






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






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






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






21. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






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






23. 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).






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






25. 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






26. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






27. 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?






28. 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.






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






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






31. Anything that shows the economy as a whole.






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






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






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






35. Rising prices - across the board.






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






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






38. 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).






39. A bad depressingly prolonged recession in economic activity.






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






41. 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






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






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






44. Long- run aggregate supply curve






45. 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.






46. The addition to total revenue created by selling one additional unit of ouput.






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






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






49. The effort of workers.






50. 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