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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 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






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






3. 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.






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






5. 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.






6. 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






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






8. The effort of workers.






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






10. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






11. The proportion of each additional dollar of income that is saved.






12. Significantly responsive to a change in price.






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






14. 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).






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






16. 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.






17. 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.






18. A relationship between two factors in which the factors move in the same direction.






19. 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.






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






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






22. 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.






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






24. 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.






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






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






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






28. 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.






29. Consumer income rise - demand will rise.






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






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






32. An industry structure in which there is only one seller for a product.






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






34. The highest point of a business cycle.






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






36. 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.






37. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






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






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






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






41. Anything that shows the economy as a whole.






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






43. Rising prices - across the board.






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






45. 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).






46. 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.






47. 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






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






49. A bad depressingly prolonged recession in economic activity.






50. Anything that can be used to produce something else