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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. The transition point between economic recession and recovery.






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






3. 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.






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






5. 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.






6. A special tax imposed on imported goods.






7. 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?






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






9. 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.






10. A measure of the price level - or the average level of prices.






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






12. 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.






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






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






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






16. Consumer income rise - demand will rise.






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






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






19. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.






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






21. 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.






22. 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






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






24. Significantly responsive to a change in price.






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






26. The amount of a good actually sold.






27. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






28. A bad depressingly prolonged recession in economic activity.






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






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






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






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






33. 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.






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






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






36. 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.






37. 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).






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






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






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






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






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






43. 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






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






45. 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






46. 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.






47. 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).






48. 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).






49. 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.






50. The study of scarcity and choice.