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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. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Aggregate Supply
Substitution effect
NRU
Macroeconomics
2. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Relative price
Equilibrium price
Fisher effect
Law of Diminishing Marginal Utility
3. Government policies aimed at stabilizing the economy by eliminating output gaps
The rate of inflation
Substitution effect
Traditional economic system
Stabilization policies
4. Total supply of goods and services in an economy
Congressional budget office
Policy reaction function
Aggregate supply
Structural unemployment
5. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Price
Normative analysis
Phillips curve
Socially optimal quantity
6. When the people believe that the nation's central bank will keep inflation rates low.
Excess Supply
Adam Smith
Credibility of monetary policy
Real GDP
7. The time period between a policy's implementation and its desired effects on an economy.
Frictional unemployment
Outside lag
Aggregate supply shock
Policy reaction function
8. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Capital income
Substitution effect
decreases increases
9. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Consumption
AD curve intersects the SAS curve
Fractional
Capital income
10. 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.
Inflation inertia
Equilibrium price
Labor supply
Capital income
11. Caused by changes in the overall economy.
Automatic stabilizers
Short run equilibrium output
Cyclical unemployment
Labor unions
12. 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.
Complement
Monopsony
Menu cost
Law of Supply
13. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Tangible Assets
Frictional unemployment
Exchange
Consumption
14. The movement of workers between jobs - companies - and industries
Worker mobility
Excess Supply
The Wealth Effect
Rationing
15. Organizations that act as moderators between employers and employees
Quantity equation
Exchange
Inflation inertia
Labor unions
16. The international sector emphasizes the ________ rate.
Exchange
Hyperinflation
Labor productivity
Trough
17. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Market equilibrium
Inflation shock
Liquidity
18. The increase in total benefit that comes from producing one additional unit.
Labor productivity
Sunk cost
Marginal benefit
NRU
19. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
NRU
Velocity
Monopsony
Indexing
20. There is an ___________ ___ when aggregate output is above potential output
Equilibrium price
Inflationary gap
Participation rate
Fractional
21. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Socially optimal quantity
Seller's surplus
Price
Liquidity
22. The ease with which an asset can be converted to currency.
Market equilibrium
NRU
Liquidity
Consumer Nondurables
23. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Deflation
Worker mobility
Congressional budget office
Rationing
24. The goods and services sector focuses largely on the level of ______ .
Peak
Aggregate demand
Income
Okun's Law
25. Used to demonstrate shifts in income distribution among a population over time.
The quality adjustment bias
Interest
Lorenz curve
Capital income
26. Extreme economic growth
Market equilibrium
Worker mobility
Boom
Intangible Assets
27. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Consumption
Free market
Command economic system
LRAS
28. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Recession
Stabilization policies
Traditional economic system
Labor supply
29. The portion of planned aggregate expenditure that is not based on output
Complement
Autonomous Expenditure
Asset
Output gap
30. 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.
Total surplus
Reservation price
Policy reaction function
Gross Domestic Product (GDP)
31. The beginning of a recession
Indexing
Peak
Fractional
Business cycle
32. Concerned with analyzing whether or not a policy should be used.
Trough
Normative analysis
Inflationary gap
Average tax rate
33. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Velocity
Complement
Invisible hand
Price level
34. Unicorporated entity that has shared ownership.
Partnership
Law of Diminishing Marginal Utility
Deflation
Intermediate goods
35. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Consumer Nondurables
Relative price
Businesses
Market equilibrium
36. 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.
Automatic stabilizers
Substitution bias
Seller's reservation price
Price
37. The continuing increase in the average level of prices of goods and services over time.
Consumption
Deflation
Inflation
Monetarism
38. The government office that is responsible for projecting federal surpluses and deficits
Supply-side policy
Fractional
Policy reaction function
Congressional budget office
39. 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).
Law of Diminishing Marginal Utility
Labor productivity
Frictional unemployment
Market equilibrium
40. That efficiency leads to economic prosperity for all.
Inflation shock
Fisher effect
The principle of efficiency
Total surplus
41. 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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42. Government policies intended to increase spending and output.
Law of Demand
Expansionary policies
AD curve intersects the SAS curve
Corporation
43. 1 percent more unemployment results in 2 percent less output.
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44. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
The real GDP per person
Short run equilibrium output
Real employment
Corporation
45. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Output gap
Consumer Nondurables
Aggregation
Phillips curve
46. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
Indexing
Capital income
Inflation shock
47. A free market system that relies on private property ownership and supply and demand
Supply-side policy
Consumption function
Automatic stabilizers
Capitalism
48. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Inside lag
Aggregate demand
Socially optimal quantity
Real GDP
49. The basic assumption of this model is that in the short run - firms meet demand at present price.
Intermediate Goods
Okun's Law
Keynesian model
Sole proprietorship
50. A quantity that is measured in real terms - the actual quantity of a good or service
Standard of living
Asset
Real quantity
Worker mobility