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






2. Consumer income rise - demand will rise.






3. 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.






4. Period in which a recession becomes prolonged and deep - involving high unemployment.






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






6. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






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






8. 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.






9. The amount of a good actually sold.






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






11. 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).






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






13. The study of scarcity and choice.






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






15. (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.






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






17. Government officials make decisions about economy.






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






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






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






21. 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.






22. The dollar value of all the goods and services sold to house holds.






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






24. Anything that can be used to produce something else






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






26. 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.






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






28. Long- run aggregate supply curve






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






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






31. A bad depressingly prolonged recession in economic activity.






32. Expenditure by businesses on plant and equipment and the change in business invention.






33. The transition point between economic recession and recovery.






34. 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.






35. The willingness and ability of buyers to purchase a good or service.






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






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






38. 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.






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






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






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






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






44. 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






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






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






47. 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






48. 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.






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






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