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






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






3. The amount of a good actually sold.






4. A bad depressingly prolonged recession in economic activity.






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






6. 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.






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






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






9. 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.






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






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






12. Government officials make decisions about economy.






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






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






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






16. Short-run aggregate supply curve






17. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






18. The income of households after taxes have been paid






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






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






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






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






23. Not significantly responsive to changes in price.






24. 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.






25. The transition point between economic recession and recovery.






26. 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.






27. Anything that can be used to produce something else






28. 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).






29. Expenditure by businesses on plant and equipment and the change in business invention.






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






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






32. The study of scarcity and choice.






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






34. Real cost of an item is its opportunity cost.






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






36. 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.






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






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






39. Anything that shows the economy as a whole.






40. The lowest point of a business cycle






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






42. 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.






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






44. 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






45. An industry structure in which there is only one seller for a product.






46. 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.






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






48. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






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






50. 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