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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 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.






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






3. 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.






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






5. The amount of a good actually sold.






6. The effort of workers.






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






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






9. 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.






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






11. 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.






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






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






14. 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.






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






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






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






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






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






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






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






22. 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.






23. Significantly responsive to a change in price.






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






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






26. The study of scarcity and choice.






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






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






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






30. 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.






31. 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.






32. 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






33. 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).






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






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






36. 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.






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






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






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






40. 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.






41. The highest point of a business cycle.






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






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






44. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






45. 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.






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






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






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






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






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