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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 in the price level






2. Long- run aggregate supply curve






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






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






5. 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.






6. 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






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






8. (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.






9. 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.






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






11. 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).






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






13. Government officials make decisions about economy.






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






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






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






17. 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.






18. The dollar value of production by a country's citizens.






19. 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.






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






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






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






23. 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.






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






25. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.






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






27. Significantly responsive to a change in price.






28. The income of households after taxes have been paid






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






30. The highest point of a business cycle.






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






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






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






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






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






36. The lowest point of a business cycle






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






38. Anything that shows the economy as a whole.






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






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






41. The study of scarcity and choice.






42. 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.






43. 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






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






45. The transition point between economic recession and recovery.






46. 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.






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






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






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






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