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






2. Government officials make decisions about economy.






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






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






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






6. 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.






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






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






9. The amount of a good actually sold.






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






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






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






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






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






15. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.






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






17. An increase in the price level






18. 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).






19. 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).






20. Short-run aggregate supply curve






21. 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?






22. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






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






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






25. A special tax imposed on imported goods.






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






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






28. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






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






30. 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.






31. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.






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






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






34. Anything that shows the economy as a whole.






35. Consumer income rise - demand will rise.






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






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






38. 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.






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






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






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






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






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






44. 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






45. Anything that can be used to produce something else






46. 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.






47. The transition point between economic recession and recovery.






48. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






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






50. Long- run aggregate supply curve