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






2. A bad depressingly prolonged recession in economic activity.






3. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






5. 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.






6. The transition point between economic recession and recovery.






7. 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.






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






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






10. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






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






12. 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.






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






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






15. The payment that capital receives in the factor market.






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






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






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






20. 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






21. An increase in the price level






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






23. 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).






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






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






26. 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.






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






28. 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.






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






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






31. Anything that shows the economy as a whole.






32. The lowest point of a business cycle






33. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.






34. Long- run aggregate supply curve






35. Anything that can be used to produce something else






36. 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).






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






38. 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.






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






40. Government officials make decisions about economy.






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. The long-run pattern of growth and recession.






43. 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.






44. The study of scarcity and choice.






45. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.






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






47. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






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






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






50. Rising prices - across the board.