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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 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.






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






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






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






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






6. Consumer income rise - demand will rise.






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






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






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






10. (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.






11. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






12. Long- run aggregate supply curve






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






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






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






16. 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.






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






18. Significantly responsive to a change in price.






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






20. The amount of a good actually sold.






21. The income of households after taxes have been paid






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






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






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






25. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






26. Government officials make decisions about economy.






27. 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).






28. 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.






29. 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.






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






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






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






33. 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






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






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






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






37. The transition point between economic recession and recovery.






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






39. 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.






40. 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






41. An increase in the price level






42. The study of scarcity and choice.






43. 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






44. Anything that can be used to produce something else






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






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






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. 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).






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






50. 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