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






2. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






3. 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






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






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






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






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






8. Consumer income rise - demand will rise.






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






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






11. (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.






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






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






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






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






16. 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).






17. 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.






18. Anything that shows the economy as a whole.






19. The amount of a good actually sold.






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






21. The highest point of a business cycle.






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






23. 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.






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






25. The study of scarcity and choice.






26. Anything that can be used to produce something else






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






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






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






30. 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






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






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






33. 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






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






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






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






37. 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.






38. The income of households after taxes have been paid






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






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






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






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






43. Not significantly responsive to changes in price.






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






45. A bad depressingly prolonged recession in economic activity.






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






47. 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.






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






49. 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?






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