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






3. 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






4. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






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






6. (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.






7. 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.






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






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






10. 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






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






12. 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






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






14. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.






15. 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.






16. Rising prices - across the board.






17. The highest point of a business cycle.






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






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






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






21. 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).






22. 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.






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






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






25. 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.






26. Anything that shows the economy as a whole.






27. 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.






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






29. 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.






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






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






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






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






34. Not significantly responsive to changes in price.






35. Anything that can be used to produce something else






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






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






38. A special tax imposed on imported goods.






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






40. 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.






41. 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






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






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






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






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






46. An increase in the price level






47. 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.






48. Short-run aggregate supply curve






49. Decisions by individuals about what to do and what not to do.






50. The transition point between economic recession and recovery.