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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 type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






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






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






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






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






6. Anything that can be used to produce something else






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






8. The highest point of a business cycle.






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






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






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






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






13. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.






14. The deliberate control of the money supply by the Federal government.






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






16. 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.






17. 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).






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






19. The transition point between economic recession and recovery.






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






21. Not significantly responsive to changes in price.






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






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






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






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






26. 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






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






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






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






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






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






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






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






34. 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.






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






36. 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.






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






38. Significantly responsive to a change in price.






39. 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






40. The income of households after taxes have been paid






41. 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.






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






43. A bad depressingly prolonged recession in economic activity.






44. The effort of workers.






45. 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.






46. Rising prices - across the board.






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






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






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






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