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






2. Significantly responsive to a change in price.






3. A bad depressingly prolonged recession in economic activity.






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






5. 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).






6. Government officials make decisions about economy.






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






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






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






10. 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.






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






12. 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.






13. 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.






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






15. The income of households after taxes have been paid






16. 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






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






18. 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).






19. Not significantly responsive to changes in price.






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. The study of scarcity and choice.






22. 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.






23. Rising prices - across the board.






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






25. The effort of workers.






26. 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.






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






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






29. 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.






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






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






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






33. The lowest point of a business cycle






34. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.






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






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






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






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






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






40. An increase in the price level






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






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






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






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






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. Real cost of an item is its opportunity cost.






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






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






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






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