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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 payment that capital receives in the factor market.






2. The lowest point of a business cycle






3. The amount of a good actually sold.






4. 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.






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






6. Anything that can be used to produce something else






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






8. 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.






9. The price of a domestic currency in terms of a foreign currency.






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






11. The transition point between economic recession and recovery.






12. 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.






13. 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).






14. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






15. A special tax imposed on imported goods.






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






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






18. 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.






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






20. 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.






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






22. 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).






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






24. 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.






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






26. Long- run aggregate supply curve






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






28. The amount of money available to consumers to purchase goods and services.






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






30. 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






31. (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.






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






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






34. Significantly responsive to a change in price.






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






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






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






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






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






40. 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.






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






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






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






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






45. Government officials make decisions about economy.






46. 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.






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






48. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






49. 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.






50. The income of households after taxes have been paid