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






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






3. An increase in the price level






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






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






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






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






8. Long- run aggregate supply curve






9. 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






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






11. The transition point between economic recession and recovery.






12. 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.






13. 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.






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






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






16. 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.






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






18. 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






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






20. Anything that can be used to produce something else






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






22. 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.






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






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






25. 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.






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






27. Anything that shows the economy as a whole.






28. 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.






29. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






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






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






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






33. The amount of a good actually sold.






34. 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.






35. A bad depressingly prolonged recession in economic activity.






36. 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.






37. The effort of workers.






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






39. 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






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






41. Rising prices - across the board.






42. An increase or decrease in consumer income will cause a shift in the Demand Curve.






43. 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.






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






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






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






47. Goods that compete with one another. If the price for one goes up the demand for the other will go up.






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






49. The payment that capital receives in the factor market.






50. The study of scarcity and choice.