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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. 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.






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






3. The amount of a good actually sold.






4. A special tax imposed on imported goods.






5. Long- run aggregate supply curve






6. 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.






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






8. 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






9. The transition point between economic recession and recovery.






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






11. 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.






12. Expenditure by businesses on plant and equipment and the change in business invention.






13. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.






14. Anything that can be used to produce something else






15. 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.






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






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






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






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






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






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






22. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






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






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






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






27. Short-run aggregate supply curve






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






29. The effort of workers.






30. Rising prices - across the board.






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






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. A bad depressingly prolonged recession in economic activity.






34. 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.






35. 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






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






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






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






39. 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.






40. Anything that shows the economy as a whole.






41. 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?






42. Consumer income rise - demand will rise.






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






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






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






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






47. 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






48. The study of scarcity and choice.






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






50. 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.