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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 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.






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






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






4. 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).






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






6. 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).






7. An increase in the price level






8. 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.






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






10. Anything that can be used to produce something else






11. The amount of a good actually sold.






12. 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.






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






14. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






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






16. 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






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






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






19. 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.






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






21. A bad depressingly prolonged recession in economic activity.






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






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






24. 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






25. 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.






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






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






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






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






31. 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.






32. The lowest point of a business cycle






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






34. The long-run pattern of growth and recession.






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






36. 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






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






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






39. 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.






40. Not significantly responsive to changes in price.






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






42. 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






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






44. The transition point between economic recession and recovery.






45. Significantly responsive to a change in price.






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






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






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






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






50. 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.