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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. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






2. The lowest point of the recession






3. Total supply of goods and services in an economy






4. Extreme economic growth






5. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






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






7. There is an ___________ ___ when aggregate output is above potential output






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






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






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






11. The real cost of changing a listed price.






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






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






14. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






15. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






16. 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.






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






18. Goods like food and clothing that have a short lifespan.






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






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






21. 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.






22. Goods not counted in the nation's GDP.






23. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.






24. A result of there only being one buyer of a resource input - good - or service.






25. A macroeconomic policy that directly affects the structure and various institutions of an economy






26. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost

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27. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






28. When inflation suddenly deviates from its normal course.






29. 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).






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






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






32. The output per employed worker






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






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






35. That efficiency leads to economic prosperity for all.






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






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






38. The rise in taxes that occurs when before-tax income increases by one dollar






39. The law that states that as the price of any good or service increases - the quantity of that good or service will increase and vice versa.






40. The annual percentage rate of change in price level reflected by price indexes






41. Business entity which legally has no separate existence from its owner.






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






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






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






45. Combines pure market and command. Example: Japan






46. The relationship between disposable income and spending on consumable goods and services






47. 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






48. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






49. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






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