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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 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






2. 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






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






4. Significantly responsive to a change in price.






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






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






7. (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.






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






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






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






11. The sum of all the quantities of a good supplies by all producers at each price.






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






13. An increase in the price level






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






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






16. Anything that can be used to produce something else






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






18. The transition point between economic recession and recovery.






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






20. Rising prices - across the board.






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






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






23. 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.






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






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






26. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.






27. A bad depressingly prolonged recession in economic activity.






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






29. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.






30. A special tax imposed on imported goods.






31. The highest point of a business cycle.






32. 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.






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






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






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






36. 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






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






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






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






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






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






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






43. 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.






44. The income of households after taxes have been paid






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






46. The amount of a good actually sold.






47. 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






48. 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?






49. 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.






50. 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.