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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 bad depressingly prolonged recession in economic activity.






2. 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.






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






4. The transition point between economic recession and recovery.






5. The highest point of a business cycle.






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






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






8. The lowest point of a business cycle






9. 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.






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. 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.






12. 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






13. 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.






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






15. 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.






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






17. Short-run aggregate supply curve






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






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






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






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






22. An increase in the price level






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






24. Rising prices - across the board.






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






26. The amount of a good actually sold.






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






28. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.






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






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






31. 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).






32. 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).






33. A relationship between two factors in which the factors move in the same direction.






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






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






36. 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).






37. Not significantly responsive to changes in price.






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






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






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






41. (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.






42. The income of households after taxes have been paid






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






44. Anything that shows the economy as a whole.






45. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






46. The effort of workers.






47. 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.






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






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






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