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






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






3. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






4. 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).






5. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.






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






7. Consumer income rise - demand will rise.






8. 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






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






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






11. 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.






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






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






14. Rising prices - across the board.






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






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






17. The transition point between economic recession and recovery.






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






19. 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.






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






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






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






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






24. Government officials make decisions about economy.






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






26. Price control set when the market price is believed to be too high.






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






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






29. 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.






30. 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.






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






32. Long- run aggregate supply curve






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






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






35. 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






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






37. 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.






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






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






40. 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.






41. 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






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






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






44. 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.






45. 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.






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






47. 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.






48. 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






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






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