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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 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.






2. The study of scarcity and choice.






3. 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).






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






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






6. The highest point of a business cycle.






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






8. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






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






10. The effort of workers.






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






12. Consumer income rise - demand will rise.






13. The income of households after taxes have been paid






14. Not significantly responsive to changes in price.






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






16. 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






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






18. The transition point between economic recession and recovery.






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






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






21. A bad depressingly prolonged recession in economic activity.






22. 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






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






24. 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).






25. 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.






26. 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.






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






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






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






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






31. 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






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






33. Rising prices - across the board.






34. 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.






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






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






37. 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.






38. The sum of all the quantities of a good supplies by all producers at each price.






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






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






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






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






43. A special tax imposed on imported goods.






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






45. 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.






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






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






48. 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.






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






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