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






2. A special tax imposed on imported goods.






3. 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).






4. 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






5. 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.






6. 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.






7. The amount of a good actually sold.






8. Not significantly responsive to changes in price.






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






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






11. 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






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






13. 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






14. 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.






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






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. 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






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






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






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






21. 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.






22. Anything that shows the economy as a whole.






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






24. 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.






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






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






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






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






29. The transition point between economic recession and recovery.






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






31. The effort of workers.






32. 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).






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






34. 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.






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






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






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






38. 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).






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






40. An increase in the price level






41. Rising prices - across the board.






42. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






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






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






45. 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.






46. 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.






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






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






50. Long- run aggregate supply curve