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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. 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).






2. 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).






3. 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.






4. 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.






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






6. 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.






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






8. Long- run aggregate supply curve






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






10. Consumer income rise - demand will rise.






11. 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.






12. The transition point between economic recession and recovery.






13. Anything that can be used to produce something else






14. 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.






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






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






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






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






19. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






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






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






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






23. 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.






24. 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






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






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






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






28. The highest point of a business cycle.






29. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






30. Rising prices - across the board.






31. Short-run aggregate supply curve






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






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






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






35. 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?






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






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






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






39. 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.






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






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






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






43. A bad depressingly prolonged recession in economic activity.






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






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






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






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






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






49. 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.






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