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Test your basic knowledge |
CLEP Macroeconomics - 3
Start Test
Study First
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. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Core rate of inflation
Aggregate demand
Disinflation
decreases increases
2. The level of output where output equals planned aggregate expenditure
Boom
Short run equilibrium output
Aggregate demand
Mixed market
3. When prices fall consistently over time - leading to negative inflation.
Lorenz curve
Worker mobility
Deflation
Labor supply
4. Patents - Goodwill - and Trademarks (lack physical substance)
Pay
Contractionary policies
Intangible Assets
Inflation inertia
5. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.
Marginal cost
Law of Diminishing Marginal Utility
Automatic stabilizers
Price level
6. 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).
Invisible hand
Frictional unemployment
The real GDP per person
Disinflation
7. Organizations that act as moderators between employers and employees
Labor unions
Credibility of monetary policy
Exchange
Seller's surplus
8. When the rate of inflation is extremely high.
Total surplus
Labor supply
Inflationary gap
Hyperinflation
9. The portion of planned aggregate expenditure that is not based on output
Autonomous Expenditure
Command economic system
Pay
Economic efficiency
10. The increase in total cost that comes from producing one additional unit of a specific good or service.
Cyclical unemployment
Short run equilibrium output
Four sectors of the economy
Marginal cost
11. A large - unexpected change in the cost of resources.
Quantity equation
Real employment
Aggregate supply shock
Exchange
12. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Four sectors of the economy
Buyer's surplus
Disinflation
Average tax rate
13. The labor sector highlights the rate of ____ .
Equilibrium price
Participation rate
Credibility of monetary policy
Pay
14. The lowest point of the recession
Market equilibrium
Trough
Consumer Nondurables
Planned aggregate expenditure (PAE)
15. The rate of price increase on all things except food and energy
Four sectors of the economy
Core rate of inflation
Marginal benefit
Equilibrium price
16. The slow change in inflation from year to year in industrialized nations
Four sectors of the economy
Outside lag
Short run equilibrium output
Inflation inertia
17. The increase in total benefit that comes from producing one additional unit.
The real GDP per person
Command economic system
Marginal benefit
Potential output
18. Government policies intended to increase spending and output.
Capital income
Labor supply
Expansionary policies
Law of Supply
19. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Inflation shock
The principle of efficiency
Participation rate
20. When an economic unit makes more than it spends
Marginal cost
Saving
Indexing
Capitalism
21. Describes how the economy directly effects the actions policymakers take.
Keynesian model
Policy reaction function
Intangible Assets
Socially optimal quantity
22. When people's expectations of future inflation do not change even though inflation rates change.
Aggregate supply
Businesses
Anchored inflation expectations
Short run equilibrium output
23. The ease with which an asset can be converted to currency.
Price level
Liquidity
Potential output
Aggregate supply shock
24. When the people believe that the nation's central bank will keep inflation rates low.
Exchange
Free market
Marginal tax rate
Credibility of monetary policy
25. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Keynesian model
Aggregation
Price
Structural unemployment
26. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Interest
Labor productivity
Consumption
Real quantity
27. The monetary sector focuses on the ________ rate.
Command economic system
Sunk cost
Monetarism
Interest
28. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Socially optimal quantity
Core rate of inflation
Aggregate Supply
Structural policy
29. When both producers and consumers are satisfied with their quantities at market price.
Tangible Assets
Market equilibrium
Participation rate
Hyperinflation
30. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Autonomous Expenditure
Structural unemployment
The real GDP per person
Output gap
31. 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
Peak
Sole proprietorship
Monetarism
Participation rate
32. The speed that money changes hands in order to buy and sell final goods and services.
Aggregate demand
Velocity
Equilibrium price
Sole proprietorship
33. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Free market
Velocity
Gross Domestic Product (GDP)
Indexing
34. The adding up of individual economic variables to obtain a large - general picture of the economy.
Fractional
The principle of efficiency
Income
Aggregation
35. 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.
Structural unemployment
Real employment
Hyperinflation
Consumption function
36. The maximum amount that an economy can output over a period of time
Indexing
Potential output
LRAS
Excess Supply
37. The rise in taxes that occurs when before-tax income increases by one dollar
Potential output
Average tax rate
Price
Marginal tax rate
38. Total supply of goods and services in an economy
Aggregate supply
Seller's reservation price
Law of Diminishing Marginal Utility
Deflation
39. 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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40. Extreme economic growth
Traditional economic system
Boom
Asset
Command economic system
41. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
NRU
The real GDP per person
Real GDP
Potential output
42. When inflation suddenly deviates from its normal course.
Inflation shock
Menu cost
Consumer Nondurables
Lorenz curve
43. Concerned with analyzing whether or not a policy should be used.
Sole proprietorship
Output gap
Tangible Assets
Normative analysis
44. A macroeconomic policy that directly affects the structure and various institutions of an economy
Supply-side policy
Labor productivity
Adam Smith
Structural policy
45. Legal entity that has received a charter from a state or federal government.
Disinflation
Socially optimal quantity
Corporation
Congressional budget office
46. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
The rate of inflation
Partnership
Output gap
Capital income
47. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Planned aggregate expenditure (PAE)
Unemployment insurance
Intermediate goods
Recession
48. The time between the need for a macroeconomic policy and its implementation
Sole proprietorship
Inside lag
Rationing
Gross Domestic Product (GDP)
49. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
decreases increases
Peak
Excess Supply
Businesses
50. The movement of workers between jobs - companies - and industries
Frictional unemployment
Worker mobility
Asset
Seller's surplus