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






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






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






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






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






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






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






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






9. 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






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






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






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






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






14. 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






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






16. 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.






17. A bad depressingly prolonged recession in economic activity.






18. 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.






19. 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






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






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






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






23. 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.






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






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






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. The transition point between economic recession and recovery.






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






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






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






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






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






33. 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?






34. Short-run aggregate supply curve






35. Not significantly responsive to changes in price.






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






37. 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.






38. Significantly responsive to a change in price.






39. Long- run aggregate supply curve






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






41. A movement along the demand curve in response to a change in price - ceteris paribus; change in price means move along the demand curve; movement = money.






42. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.






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






44. 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.






45. The effort of workers.






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






47. 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.






48. A special tax imposed on imported goods.






49. 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.






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