AP MACROECONOMICS ACTUAL TEST
QUESTIONS WITH VERIFIED ANSWERS
COMPLETE EXAM REVIEW
●● Disposable Income
Answer: Equal to income plus government transfers minus taxes, is the
total amount of household income available to spend on consumption
and to save
●● Exports
Answer: Goods and services sold to other countries.
-Generate an inflow of funds into the country
●● Final goods and services
Answer: Goods and services sold to the final, or end, user
●● GDP
Answer: The total value of all final goods and services produced in the
economy during a given year. Does not include the value of intermediate
goods
●● Imports
Answer: Goods and services purchased from other countries
, -Generates an outflow of funds to the rest of the world
●● Inflation rate
Answer: The percentage increase in the overall level of prices per year
CPI= price level
●● Intermediate goods and services
Answer: Goods and services bought from one firm by another firm to be
used as inputs into the production of final goods and services
●● Labor force
Answer: Equal to the sum of the employed and the unemployed
-The people who are currently working and the people who are currently
looking for work
Labor force participation rate= (Labor force)/(Pop. aged 16 and older) x
100%
●● Market Basket
Answer: A hypothetical set of consumer purchases of goods and services
used to measure changes in overall price.
●● Real wage and income
Answer: Real wage: Wage rate divided by the price level to adjust for
the effects of inflation or deflation
QUESTIONS WITH VERIFIED ANSWERS
COMPLETE EXAM REVIEW
●● Disposable Income
Answer: Equal to income plus government transfers minus taxes, is the
total amount of household income available to spend on consumption
and to save
●● Exports
Answer: Goods and services sold to other countries.
-Generate an inflow of funds into the country
●● Final goods and services
Answer: Goods and services sold to the final, or end, user
●● GDP
Answer: The total value of all final goods and services produced in the
economy during a given year. Does not include the value of intermediate
goods
●● Imports
Answer: Goods and services purchased from other countries
, -Generates an outflow of funds to the rest of the world
●● Inflation rate
Answer: The percentage increase in the overall level of prices per year
CPI= price level
●● Intermediate goods and services
Answer: Goods and services bought from one firm by another firm to be
used as inputs into the production of final goods and services
●● Labor force
Answer: Equal to the sum of the employed and the unemployed
-The people who are currently working and the people who are currently
looking for work
Labor force participation rate= (Labor force)/(Pop. aged 16 and older) x
100%
●● Market Basket
Answer: A hypothetical set of consumer purchases of goods and services
used to measure changes in overall price.
●● Real wage and income
Answer: Real wage: Wage rate divided by the price level to adjust for
the effects of inflation or deflation
