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






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






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






4. 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.






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






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






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






8. The lowest point of a business cycle






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






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






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






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. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






14. 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).






15. 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?






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






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






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






19. 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.






20. 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.






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






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






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






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






25. The effort of workers.






26. (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.






27. Anything that can be used to produce something else






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






29. Real cost of an item is its opportunity cost.






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






31. 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.






32. 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.






33. Long- run aggregate supply curve






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. A special tax imposed on imported goods.






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






37. 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






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






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






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






41. Anything that shows the economy as a whole.






42. The transition point between economic recession and recovery.






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






44. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






45. Government officials make decisions about economy.






46. Consumer income rise - demand will rise.






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






48. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






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