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






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






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






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






5. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






6. 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.






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






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






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






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






11. 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






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






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






14. Rising prices - across the board.






15. 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).






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






17. 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






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






19. Not significantly responsive to changes in price.






20. The lowest point of a business cycle






21. The study of scarcity and choice.






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






23. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.






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






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






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






27. Significantly responsive to a change in price.






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






29. The proportion of each additional dollar of income that will go toward consumption expenditures.






30. 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.






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






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






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






34. 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.






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






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






37. 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.






38. The deliberate control of the money supply by the Federal government.






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






40. The transition point between economic recession and recovery.






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






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






43. 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.






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






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






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






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






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






49. 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






50. Consumer income rise - demand will rise.