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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. 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.






2. 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






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






4. 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.






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






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






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






8. A bad depressingly prolonged recession in economic activity.






9. 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.






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






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






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






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






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






15. Consumer income rise - demand will rise.






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






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






18. Not significantly responsive to changes in price.






19. 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).






20. 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.






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






22. 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.






23. 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.






24. 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






25. 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.






26. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






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






28. 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.






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






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






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






32. The proportion of each additional dollar of income that will go toward consumption expenditures.






33. The amount of a good actually sold.






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






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






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






37. The income of households after taxes have been paid






38. Anything that can be used to produce something else






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






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






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






42. Government officials make decisions about economy.






43. Long- run aggregate supply curve






44. 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).






45. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






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






47. A special tax imposed on imported goods.






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






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






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