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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. 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?






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






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






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






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






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






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






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






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






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






11. 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).






12. Consumer income rise - demand will rise.






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






14. 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.






15. The lowest point of a business cycle






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






17. (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.






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






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






20. An increase in the price level






21. Short-run aggregate supply curve






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






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






24. 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).






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






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






27. 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.






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






29. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






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






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






32. The highest point of a business cycle.






33. 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






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






35. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






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






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






38. Rising prices - across the board.






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






40. The study of scarcity and choice.






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






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






43. 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.






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






45. 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.






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






47. 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.






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






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






50. The transition point between economic recession and recovery.