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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. Not significantly responsive to changes in price.






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






3. 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.






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






5. Rising prices - across the board.






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






7. Consumer income rise - demand will rise.






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






9. 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.






10. A bad depressingly prolonged recession in economic activity.






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






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






13. A special tax imposed on imported goods.






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






15. 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.






16. An increase in the price level






17. Significantly responsive to a change in price.






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






19. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






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






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






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






23. The addition to total revenue created by selling one additional unit of ouput.






24. 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






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






26. The effort of workers.






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






28. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






29. 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.






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






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






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






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






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






35. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






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






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






38. 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).






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






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






41. The income of households after taxes have been paid






42. 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.






43. 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.






44. 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






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






46. 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).






47. 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).






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






49. 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).






50. 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.