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CLEP Macroeconomics - 3

Subjects : clep, economics
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. Patents - Goodwill - and Trademarks (lack physical substance)






2. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






3. The price of a good or service in relation to the price of other goods and services.






4. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






5. Maximum price that a customer is willing to pay for a good






6. A large - unexpected change in the cost of resources.






7. The part of economics study that looks at the operation of a nation's economy as a whole






8. Total supply of goods and services in an economy






9. The maximum amount that an economy can output over a period of time






10. The difference between the price received by the seller and the seller's reservation price

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11. An increase in spending due to a perceived increase in wealth.






12. The beginning of a recession






13. The portion of planned aggregate expenditure that is not based on output






14. The speed that money changes hands in order to buy and sell final goods and services.






15. Refers to individuals between jobs seeking new employment - people re-entering the workforce (ie mom whose kids are grown) - and new entrants (ie college graduates).






16. When the people believe that the nation's central bank will keep inflation rates low.






17. A quantity that is measured in real terms - the actual quantity of a good or service






18. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






19. A Scottish man (1723-1790) who is known as the father of modern economics.






20. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.






21. When prices fall consistently over time - leading to negative inflation.






22. Concerned with analyzing whether or not a policy should be used.






23. The continuing increase in the average level of prices of goods and services over time.






24. Extreme economic growth






25. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.






26. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






27. The movement of workers between jobs - companies - and industries






28. The degree to which people have access to goods and services that make their lives better.






29. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






30. An increase in this would cause an increase in the aggregate supply






31. The increase in total benefit that comes from producing one additional unit.






32. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply






33. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






34. The slow change in inflation from year to year in industrialized nations






35. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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36. The ease with which an asset can be converted to currency.






37. Describes how the economy directly effects the actions policymakers take.






38. The lowest point of the recession






39. Money multiplied by velocity equals nominal GDP.






40. The government office that is responsible for projecting federal surpluses and deficits






41. Goods and services sector - Labor sector - monetary sector - international sector.






42. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






43. Natural Rate of Unemployment - a rate that will always exist






44. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






45. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






46. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






47. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






48. Legal entity that has received a charter from a state or federal government.






49. Represents the governmental tax rate that will best maximize tax revenues.






50. Used in the production of final goods - but instead of being consumed - are available for reuse.