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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. When the rate of inflation is extremely high.






2. The lowest point of the recession






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






4. 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.






5. 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.






6. A record of economic increases and decreases over time.






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






8. Used to demonstrate shifts in income distribution among a population over time.






9. Most free-market banking systems are based on __________ reserves.






10. 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.






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






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






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






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






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






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






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






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






19. Government policies intended to increase spending and output.






20. 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.






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






22. The time between the need for a macroeconomic policy and its implementation






23. The international sector emphasizes the ________ rate.






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






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






26. Extreme economic growth






27. Government policies aimed at stabilizing the economy by eliminating output gaps






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






29. The real cost of changing a listed price.






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






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






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






33. When inflation suddenly deviates from its normal course.






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






35. The output per employed worker






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






37. A policy that affects potential output






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






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






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






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






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






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






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






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






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






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






48. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






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






50. 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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