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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. The highest point of a business cycle.






2. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.






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






4. 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






5. A Latin phrase meaning 'all things constant.'






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






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






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






9. The income of households after taxes have been paid






10. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.






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






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






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






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






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






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






17. 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).






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






19. 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.






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






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






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






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






24. 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






25. Consumer income rise - demand will rise.






26. 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.






27. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






28. 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.






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






30. 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






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






32. (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.






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






34. 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.






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






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






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






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






39. 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.






40. A special tax imposed on imported goods.






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






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






43. Significantly responsive to a change in price.






44. An increase in the price level






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






46. The proportion of each additional dollar of income that will go toward consumption expenditures.






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






48. Anything that can be used to produce something else






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






50. 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







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