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






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






3. 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).






4. 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.






5. Anything that shows the economy as a whole.






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






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






8. The income of households after taxes have been paid






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






10. 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.






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






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






13. 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






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






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






16. 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






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






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






19. Long- run aggregate supply curve






20. 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).






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






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






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






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






25. The highest point of a business cycle.






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






27. 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.






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






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






30. A good for which there is less demand as income rises; a good the demand for which falls as income rises and rises as income falls; consumer income rises while demand decreases.






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






32. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.






33. The lowest point of a business cycle






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






35. 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.






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






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






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






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






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






41. 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.






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






43. 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.






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






45. The long-run pattern of growth and recession.






46. The amount of a good actually sold.






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






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






49. Anything that can be used to produce something else






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