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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. 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.






2. The transition point between economic recession and recovery.






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






4. (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.






5. 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






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






7. The amount of a good actually sold.






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






9. 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






10. Significantly responsive to a change in price.






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. Anything that can be used to produce something else






13. 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






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






15. 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.






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






17. The income of households after taxes have been paid






18. 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.






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






20. The effort of workers.






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






22. 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.






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






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






25. 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.






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






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






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






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






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






31. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






32. 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.






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






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






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






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






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






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






39. 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.






40. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.






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






42. Not significantly responsive to changes in price.






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






44. A bad depressingly prolonged recession in economic activity.






45. 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.






46. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






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






48. The highest point of a business cycle.






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






50. A special tax imposed on imported goods.