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






3. The total value of goods and services produced in a country valued at current prices.






4. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






5. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






6. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






7. Extreme economic growth






8. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






9. When inflation suddenly deviates from its normal course.






10. The total planned spending on final goods and services.






11. (n) something of value; a resource; an advantage






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






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






14. 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.






15. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






17. The monetary sector focuses on the ________ rate.






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






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






20. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






21. 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.






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






23. The time period between a policy's implementation and its desired effects on an economy.






24. Combines pure market and command. Example: Japan






25. The increase in total cost that comes from producing one additional unit of a specific good or service.






26. The international sector emphasizes the ________ rate.






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






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






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






30. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






31. The level of output where output equals planned aggregate expenditure






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






33. Goods that are used in the production of final goods.






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






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






36. Real Estate - Equipment - and Cash (physical assets)






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






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






39. Total tax paid divided by total (taxable) income - as a percentage.






40. When people's expectations of future inflation do not change even though inflation rates change.






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






42. When both producers and consumers are satisfied with their quantities at market price.






43. The adding up of individual economic variables to obtain a large - general picture of the economy.






44. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






45. Total supply of goods and services in an economy






46. The lowest point of the recession






47. 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.






48. A policy that affects potential output






49. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.






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