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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 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.






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






3. 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.






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






5. 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.






6. 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.






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






8. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.






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






10. Short-run aggregate supply curve






11. 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.






12. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






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






14. 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.






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






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






18. The highest point of a business cycle.






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






20. 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?






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






22. 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.






23. 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






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






25. The cost of something in terms of what one must give up to get it.






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






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






28. Anything that shows the economy as a whole.






29. 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.






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






31. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






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






33. A special tax imposed on imported goods.






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






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






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






37. 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.






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






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






40. (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.






41. 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.






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






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






44. Anything that can be used to produce something else






45. 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.






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






47. The lowest point of a business cycle






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






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






50. 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