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






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






3. The effort of workers.






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






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






6. 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.






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






8. 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.






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






10. 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.






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






12. The income of households after taxes have been paid






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






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






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






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






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






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






19. Short-run aggregate supply curve






20. 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.






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






22. 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.






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






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 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.






26. 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).






27. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






28. The study of scarcity and choice.






29. Not significantly responsive to changes in price.






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






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






32. Consumer income rise - demand will rise.






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






34. 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.






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






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






37. 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






38. The highest point of a business cycle.






39. Anything that can be used to produce something else






40. A bad depressingly prolonged recession in economic activity.






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






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






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






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






45. Significantly responsive to a change in price.






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






47. The transition point between economic recession and recovery.






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






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






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