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






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






3. The amount of a good actually sold.






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






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






6. 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?






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






8. 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.






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






10. The lowest point of a business cycle






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






12. 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.






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






14. Not significantly responsive to changes in price.






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






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






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






18. Long- run aggregate supply curve






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






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






21. 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).






22. 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






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






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






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






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






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






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






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






30. 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.






31. 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).






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






33. 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






34. 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.






35. 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.






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






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






38. Real cost of an item is its opportunity cost.






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






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






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






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






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






44. The highest point of a business cycle.






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






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






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






48. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






50. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.