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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 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.






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






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






4. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






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






6. Real cost of an item is its opportunity cost.






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






8. 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.






9. Anything that shows the economy as a whole.






10. 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






11. 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






12. 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.






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






14. The effort of workers.






15. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






16. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






17. 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.






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






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






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






21. 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.






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






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






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






25. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






26. 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).






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






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






29. The transition point between economic recession and recovery.






30. Rising prices - across the board.






31. The sum of all the quantities of a good supplies by all producers at each price.






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






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






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






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






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






37. A special tax imposed on imported goods.






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






39. 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.






40. Long- run aggregate supply curve






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






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






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






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






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






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






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






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






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






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