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






2. A bad depressingly prolonged recession in economic activity.






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






4. 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.






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






6. Not significantly responsive to changes in price.






7. 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.






8. Consumer income rise - demand will rise.






9. 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.






10. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






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






12. 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.






13. The effort of workers.






14. 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.






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






16. (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.






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






18. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






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






20. 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?






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






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






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






24. The study of scarcity and choice.






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






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






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






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






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






30. The payment that capital receives in the factor market.






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






32. 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.






33. The transition point between economic recession and recovery.






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






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






36. 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.






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






38. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.






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






40. 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






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






42. 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.






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






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






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






47. The highest point of a business cycle.






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






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