Download AP Macro Vocabulary

AP MACROECONOMICS VOCABULARY
PART ONE VOCABULARY
CHAPTER 1
1.
2.
3.
4.
5.
6.
7.
8.
9.
economics
economic perspective
marginal analysis
scientific method
theoretical economics
principles
generalizations
other-things-equal assumption
policy economics
10. tradeoffs
11. macroeconomics
12. aggregate
13. microeconomics
14. positive economics
15. normative economics
16. fallacy of composition
17. “after this, therefore because of
this.” Fallacy
CHAPTER 1 APPENDIX
1.
2.
3.
4.
horizontal axis
vertical axis
direct relationship
inverse relationship
5.
6.
7.
8.
independent variable
dependent variable
slope of a straight line
vertical intercept
CHAPTER 2
1. economizing problem
2. utility
3. economic resources
4. land
5. capital
6. investment
7. labor
8. entrepreneurial ability
9. factors of production
10. full employment
11. full production
12. productive efficiency
13. allocative efficiency
14. consumer goods
15. capital goods
16. production possibilities table
17. production possibilities curve
18. opportunity cost
19. law of increasing opportunity
costs
20. economic growth
21. economic system
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22. market system
23. capitalism
24. command system
25. resource market
26. product market
27. circular flow model
CHAPTER 3
1. Market
2. demand
3. demand schedule
4. law of demand
5. diminishing marginal utility
6. income effect
7. substitution effect
8. demand curve
9. determinants of demand
10. normal goods
11. inferior goods
12. substitute good
13. complementary good
14. change in demand
15. change in quantity demanded
16. supply
17. supply schedule
18. law of supply
19. supply curve
20. determinants of supply
21. change in supply
22. change in quantity supplied
23. surplus
24. shortage
25. equilibrium price
26. equilibrium quantity
27. rationing function of prices
CHAPTER 4
1.
2.
3.
4.
5.
6.
7.
private property
self-interest
competition
roundabout production
specialization
division of labor
medium of exchange
8. barter
9. money
10. economic costs
11. normal profit
12. economic profit
13. consumer sovereignty
14. dollar votes
CHAPTER 5
1.
2.
3.
4.
5.
6.
7.
durable goods
nondurable goods
plant
firm
industry
sole proprietorship
partnership
8. corporation
9. stocks
10. bonds
11. limited liability
12. double taxation
13. monopoly
14. spillover costs
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15. exclusion principle
16. public goods
17. free-rider problem
18. quasi-public goods
19. transfer payments
20. personal income tax
21. corporate income tax
22. sales and excise taxes
23. property taxes
24. fiscal federalism
CHAPTER 6
1. multinational corporations
2. comparative advantage
3. terms of trade
4. foreign exchange market
5. exchange rates
6. depreciation
7. appreciation
8. protective tariffs
9. import quotas
10. nontariff barriers
11. export subsidies
12. Smoot-Hawley Tariff Act
13. Reciprocal Trade Agreements Act
14. Most-favored-nation clauses
15. General Agreement on Tariffs and
Trade (GATT)
16. World Trade Organization (WTO)
17. European Union (EU)
18. Euro
19. North American Free Trade
Agreement (NAFTA)
PART TWO VOCABULARY
CHAPTER 7
1.
2.
3.
4.
5.
6.
7.
8.
9.
national income accounting
gross domestic product (GDP)
intermediate goods
final goods
multiple counting
value added
expenditures approach
income approach
personal consumption expenditures
(C)
10. gross private domestic investment
(Ig)
11. net private domestic investment
12. government purchases (G)
13. net exports (Xn)
14. national income
15. indirect business taxes
16. consumption of fixed capital
17. net domestic product (NDP)
18. personal income (PI)
19. disposable income (DI)
20. nominal GDP
21. price index
22. real GDP
23. consumer price index (CPI)
24. per capita output
CHAPTER 8
1. economic growth
2. rule of 70
3. productivity
4. business cycle
5. peak
6. recession
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19. Okun’s law
20. inflation
21. demand-pull inflation
22. cost-push inflation
23. per-unit production costs
24. nominal income
25. real income
26. anticipated inflation
27. unanticipated inflation
28. cost-of-living adjustments (COLA)
29. real interest rate
30. nominal interest rate
31. deflation
32. hyperinflation
7. trough
8. recovery
9. labor force
10. unemployment rate
11. discouraged workers
12. frictional unemployment
13. structural unemployment
14. cyclical unemployment
15. full-employment rate of
unemployment
16. natural rate of unemployment
(NRU)
17. potential output
18. GDP gap
CHAPTER 9
1. break-even income
2. average propensity to consume
(APC)
3. average propensity to save
(APS)
4. marginal propensity to
consume (MPC)
5. marginal propensity to save
(MPS)
6. wealth effect
7. real interest rate
8. 45 º line
9. leakage
10. injection
CHAPTER 10
1. multiplier
2. net exports
3. lump-sum tax
4. balanced budget multiplier
5. recessionary gap
6. inflationary gap
CHAPTER 11
1. aggregate demand-aggregate
supply (AD-AS) model
2. aggregate demand
3. real-balances effect
4. interest-rate effect
5. foreign purchases effect
6. determinants of aggregate
demand
7. aggregate supply
8. horizontal range (of AS curve)
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9. intermediate range (of AS
curve)
10. vertical range (of AS curve)
11. determinants of aggregate
supply
12. productivity
13. equilibrium price level
14. equilibrium real output
15. efficiency wages
16. menu costs
CHAPTER 12
1. fiscal policy
2. Employment Act of 1946
3. Council of Economic Advisers
(CEA)
4. expansionary fiscal policy
5. budget deficit
6. contractionary fiscal policy
7. budget surplus
8. built-in stabilizer
9. progressive tax system
10. proportional tax system
11. full-employment budget
12. cyclical deficit
13. political business cycle
14. crowding-out effect
15. net export effect
16. supply-side fiscal policy
PART THREE VOCABULARY
CHAPTER 13
1. medium of exchange
2. unit of account
3. store of value
4. M1, M2, M3
5. token money
6. Federal Reserve Notes
7. checkable deposits
8. commercial banks
9. thrift institutions
10. near-monies
11. savings account
12. money market deposit account
(MMDA)
13. time deposits
14. money market mutual fund
(MMMF)
15. legal tender
16. transactions demand
17. asset demand
18. total demand for money
19. money market
20. Federal Reserve System
21. Board of Governors
22. Federal Open Market Committee
(FOMC)
23. Federal Reserve Banks
24. electronic transactions
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CHAPTER 14
1.
2.
3.
4.
5.
balance sheet
fractional reserve system
vault cash
required reserve
reserve ratio
6.
7.
8.
9.
excess reserves
actual reserves
Federal funds rate
monetary multiplier
CHAPTER 15
1.
2.
3.
4.
5.
monetary policy
open-market operations
reserve ratio
discount rate
easy money
6. tight money
7. velocity of money
8. cyclical asymmetry
9. Federal funds rate
10. prime interest rate
AP MACROECONOMICS
CHAPTER 16
1.
2.
3.
4.
5.
6.
short run
long run
short-run aggregate supply curve
long-run aggregate supply curve
Phillips Curve
stagflation
7. aggregate supply shocks
8. long-run vertical Phillips Curve
9. disinflation
10. supply-side economics
11. Lafer Curve
CHAPTER 18
1.
2.
3.
4.
public debt
U.S. securities
annually balanced budget
cyclically balanced budget
5.
6.
7.
8.
functional finance
social security trust fund
external public debt
public investments
PART NINE VOCABULARY
CHAPTER 37
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1. principle of comparative
advantage
2. terms of trade
3. gains from trade
4. world price
5.
6.
7.
8.
9.
equilibrium world price
tariffs
nontariff barrier (NTB)
dumping
World Trade Organization (WTO)
CHAPTER 38
1.
2.
3.
4.
5.
6.
7.
8.
balance of payments
current account
trade deficit
trade surplus
balance on current account
capital account
official reserves
flexible- or floating- exchange-rate
system
9. fixed exchange-rate system
10. purchasing-power-parity theory
11. gold standard
12. devaluation
13. Breton Woods system
14. International Monetary Fund (IMF)
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