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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. 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.






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






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






5. 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.






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






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






8. Not significantly responsive to changes in price.






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






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






11. The lowest point of a business cycle






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






13. The amount of a good actually sold.






14. 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).






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






16. 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.






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






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






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






20. 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






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






22. 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.






23. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






24. Significantly responsive to a change in price.






25. (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.






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






27. 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.






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






29. 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.






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






31. Consumer income rise - demand will rise.






32. 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.






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






34. Short-run aggregate supply curve






35. 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).






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






37. The study of scarcity and choice.






38. The income of households after taxes have been paid






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






40. 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






41. 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.






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






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






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






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






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






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






48. 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.






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






50. 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.