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






2. 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.






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






4. 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.






5. 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.






6. Anything that can be used to produce something else






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






8. 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






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






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






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






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






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






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






15. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.






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






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






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






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






20. 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).






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






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






23. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.






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






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






26. 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.






27. 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).






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






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






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






31. 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.






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






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






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






35. 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.






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






37. 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.






38. The effort of workers.






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






40. 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).






41. 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.






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






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






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






45. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






47. Rising prices - across the board.






48. Short-run aggregate supply curve






49. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.






50. 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