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






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






3. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






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






5. Not significantly responsive to changes in price.






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






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






8. Long- run aggregate supply curve






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






10. 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.






11. Anything that shows the economy as a whole.






12. 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






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






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






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






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






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






18. 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.






19. 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.






20. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.






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






22. 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.






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






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






25. 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.






26. 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.






27. 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






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






29. The amount of a good actually sold.






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






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






32. The lowest point of a business cycle






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






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






35. 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.






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






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






38. 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.






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






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






41. 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.






42. 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






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






44. A bad depressingly prolonged recession in economic activity.






45. 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






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






47. 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.






48. Government officials make decisions about economy.






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






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







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