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






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






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






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






6. 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.






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






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






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






10. A bad depressingly prolonged recession in economic activity.






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






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






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






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






15. 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.






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






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






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






19. An increase in the price level






20. 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?






21. 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.






22. Long- run aggregate supply curve






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






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






25. 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.






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






27. The highest point of a business cycle.






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






29. 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.






30. The transition point between economic recession and recovery.






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






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






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






34. 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).






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






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






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






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






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






40. (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.






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






42. 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.






43. 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






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






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






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






47. A relationship between two factors in which the factors move in the same direction.






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






49. Rising prices - across the board.






50. 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.