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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. Consumer income rise - demand will rise.






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






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






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






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






6. A bad depressingly prolonged recession in economic activity.






7. 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.






8. 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






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






10. 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.






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






12. Price control set when the market price is believed to be too high.






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






14. The amount of a good actually sold.






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






16. Anything that shows the economy as a whole.






17. Significantly responsive to a change in price.






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






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






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






21. 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).






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






23. 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).






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






25. 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.






26. The highest point of a business cycle.






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






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






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






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






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






32. Rising prices - across the board.






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






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






35. 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.






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






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






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






39. 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.






40. Short-run aggregate supply curve






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






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






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






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






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






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






47. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






48. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






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






50. 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.