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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. Not significantly responsive to changes in price.






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






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






4. 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.






5. 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.






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






7. 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.






8. Long- run aggregate supply curve






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






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






11. 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






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






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






15. Anything that shows the economy as a whole.






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






17. 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.






18. An increase or decrease in consumer income will cause a shift in the Demand Curve.






19. Government officials make decisions about economy.






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






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






22. An increase in the price level






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






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






25. 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.






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






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






28. 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).






29. 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.






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






31. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






32. Anything that can be used to produce something else






33. 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.






34. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






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






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






37. 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






38. The lowest point of a business cycle






39. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






40. 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.






41. The transition point between economic recession and recovery.






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






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






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






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






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






47. 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.






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






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






50. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.