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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 proportion of each additional dollar of income that is saved.






2. Long- run aggregate supply curve






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






4. 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.






5. 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).






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






7. 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.






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






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






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






11. The amount of a good actually sold.






12. 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.






13. 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.






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






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






16. The willingness and ability of buyers to purchase a good or service.






17. 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.






18. Anything that can be used to produce something else






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






20. 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.






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






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






23. The transition point between economic recession and recovery.






24. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






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






26. 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.






27. Consumer income rise - demand will rise.






28. 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.






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






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






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






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






33. Short-run aggregate supply curve






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






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






36. 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






37. The dollar value of goods and services sold to governments.






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






39. (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.






40. Government officials make decisions about economy.






41. 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.






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






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






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






45. The highest point of a business cycle.






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






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. Not significantly responsive to changes in price.






49. 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.






50. 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?