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






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






3. 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.






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. Long- run aggregate supply curve






6. The effort of workers.






7. Anything that can be used to produce something else






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






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






10. 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).






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






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






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






14. 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.






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






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






17. A curve defining the relationship between real production and price level.






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






19. 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






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






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






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






23. (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.






24. The amount of a good actually sold.






25. Government officials make decisions about economy.






26. Not significantly responsive to changes in price.






27. 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.






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






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






30. The highest point of a business cycle.






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






32. The lowest point of a business cycle






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






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






35. 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.






36. 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.






37. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






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






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






40. A bad depressingly prolonged recession in economic activity.






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






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. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






44. 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.






45. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.






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






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






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






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






50. Rising prices - across the board.