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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 proportion of each additional dollar of income that is saved.






2. (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.






3. Not significantly responsive to changes in price.






4. 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.






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






6. 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.






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






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






9. The income of households after taxes have been paid






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






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






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






13. 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.






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






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






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






17. Anything that shows the economy as a whole.






18. Government officials make decisions about economy.






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






20. 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






21. Rising prices - across the board.






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






23. The lowest point of a business cycle






24. 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.






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






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






27. Consumer income rise - demand will rise.






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






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






30. 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.






31. 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?






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






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






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






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






36. 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.






37. 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.






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






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






40. A special tax imposed on imported goods.






41. 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






42. 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).






43. The payment that capital receives in the factor market.






44. Anything that can be used to produce something else






45. The effort of workers.






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






47. 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






48. Short-run aggregate supply curve






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






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