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






2. The income of households after taxes have been paid






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






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






5. 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.






6. 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






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






8. Not significantly responsive to changes in price.






9. 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).






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






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






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






13. 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.






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






15. 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.






16. 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.






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






18. Rising prices - across the board.






19. 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.






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






21. 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).






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






23. 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.






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






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






26. (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.






27. Short-run aggregate supply curve






28. The lowest point of a business cycle






29. 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.






30. The amount of a good actually sold.






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






32. 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.






33. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






35. The effort of workers.






36. The highest point of a business cycle.






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






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






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






40. 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.






41. Long- run aggregate supply curve






42. 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.






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






44. 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






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






46. Anything that can be used to produce something else






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






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






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






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