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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 table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






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






3. (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.






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






5. 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.






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






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






8. 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.






9. 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.






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






11. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.






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






13. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






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






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






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






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






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






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






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






21. 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).






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






23. 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.






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






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






26. Government officials make decisions about economy.






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






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






29. The addition to total revenue created by selling one additional unit of ouput.






30. The amount of a good actually sold.






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






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






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






34. 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






35. 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






36. Anything that can be used to produce something else






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






38. 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.






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






40. 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.






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






42. 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






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






44. 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.






45. Significantly responsive to a change in price.






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






47. 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.






48. The highest point of a business cycle.






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






50. 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