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






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






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






4. 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.






5. The lowest point of a business cycle






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






7. 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






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. 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.






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






11. The income of households after taxes have been paid






12. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






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






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






15. 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.






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






17. Long- run aggregate supply curve






18. 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.






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






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






21. The amount of a good actually sold.






22. 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






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






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






25. 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).






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






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






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






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






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






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






32. 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.






33. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc






34. A curve defining the relationship between real production and price level.






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






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






37. 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.






38. 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?






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






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






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






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






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






44. Anything that shows the economy as a whole.






45. 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






46. Consumer income rise - demand will rise.






47. 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.






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






49. 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.






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







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