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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. Government officials make decisions about economy.






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






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






4. 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.






5. 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.






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






7. 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.






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






9. Rising prices - across the board.






10. 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.






11. 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






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






13. The highest point of a business cycle.






14. Significantly responsive to a change in price.






15. 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.






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






17. Anything that can be used to produce something else






18. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






20. 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).






21. 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.






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






23. The amount of a good actually sold.






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






25. A bad depressingly prolonged recession in economic activity.






26. 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.






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






28. 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.






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






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






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






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






33. A good for which there is less demand as income rises; a good the demand for which falls as income rises and rises as income falls; consumer income rises while demand decreases.






34. A special tax imposed on imported goods.






35. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.






36. 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.






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






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






39. 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






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






41. 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.






42. Short-run aggregate supply curve






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






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






45. The income of households after taxes have been paid






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






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






48. Anything that shows the economy as a whole.






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






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