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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. Short-run aggregate supply curve






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






3. A special tax imposed on imported goods.






4. 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).






5. 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).






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






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






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






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






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






11. Long- run aggregate supply curve






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






13. 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.






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






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






16. Not significantly responsive to changes in price.






17. 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.






18. 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






19. 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.






20. 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.






21. An increase in the price level






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






23. The transition point between economic recession and recovery.






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






25. Anything that can be used to produce something else






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






27. 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.






28. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






29. Government officials make decisions about economy.






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






31. The highest point of a business cycle.






32. 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.






33. The effort of workers.






34. 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.






35. 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.






36. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.






37. 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.






38. A way of measuring the GDP by adding up all spending on final goods and services during a given year.






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






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






41. 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.






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






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. 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






45. The willingness and ability of buyers to purchase a good or service.






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






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






48. 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?






49. 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.






50. A bad depressingly prolonged recession in economic activity.