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






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






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






4. Short-run aggregate supply curve






5. 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.






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






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 payment that capital receives in the factor market.






9. 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






10. Government officials make decisions about economy.






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






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






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






14. 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.






15. Consumer income rise - demand will rise.






16. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.






17. The effort of workers.






18. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






19. The income of households after taxes have been paid






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






21. 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.






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






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






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






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






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






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






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






29. 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.






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






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






32. 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.






33. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.






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






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






36. 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






37. 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.






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






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






41. 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?






42. 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.






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






44. (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.






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






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






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






48. Not significantly responsive to changes in price.






49. Significantly responsive to a change in price.






50. Long- run aggregate supply curve