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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 created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






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






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






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






5. (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.






6. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






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






8. A special tax imposed on imported goods.






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






10. The effort of workers.






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






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






13. 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.






14. 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






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






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






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






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






19. A bad depressingly prolonged recession in economic activity.






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






21. 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.






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






23. 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.






24. An increase in the price level






25. Government officials make decisions about economy.






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






27. 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.






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






29. The transition point between economic recession and recovery.






30. The amount of a good actually sold.






31. 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.






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






33. 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.






34. Significantly responsive to a change in price.






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






36. Anything that can be used to produce something else






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






38. 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.






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






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






41. Consumer income rise - demand will rise.






42. 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






43. 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.






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






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






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






47. The income of households after taxes have been paid






48. 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).






49. 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.






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