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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. 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?






2. 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.






3. 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.






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






5. 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






6. 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






7. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






8. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






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






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






11. Short-run aggregate supply curve






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






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






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






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






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






17. A measure of the price level - or the average level of prices.






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






20. 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.






21. 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






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






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






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






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






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






27. 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.






28. 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).






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






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






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






32. The study of scarcity and choice.






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






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






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






36. (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.






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






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






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






40. 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.






41. 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.






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






43. 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






44. 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






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






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






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






48. Anything that shows the economy as a whole.






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






50. 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).