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






2. 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.






3. Rising prices - across the board.






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






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






6. 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).






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






8. 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.






9. The transition point between economic recession and recovery.






10. The amount of a good actually sold.






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






12. 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.






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






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






15. Anything that shows the economy as a whole.






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






17. 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.






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






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






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






21. Long- run aggregate supply curve






22. 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.






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






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






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






26. A bad depressingly prolonged recession in economic activity.






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






28. 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.






29. 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?






30. 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.






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






32. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






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






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






35. The income of households after taxes have been paid






36. 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.






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






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






39. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc






40. 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).






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






42. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






43. The highest point of a business cycle.






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






45. 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.






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






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






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






49. The lowest point of a business cycle






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