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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. Caused by changes in the overall economy.
Cyclical unemployment
Intermediate goods
Tangible Assets
Expansionary policies
2. An increase in this would cause an increase in the aggregate supply
Labor productivity
Gross Domestic Product (GDP)
Relative price
Exchange
3. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
The principle of efficiency
Indexing
Expansionary policies
Keynesian model
4. Patents - Goodwill - and Trademarks (lack physical substance)
Invisible hand
Labor productivity
Substitution bias
Intangible Assets
5. The international sector emphasizes the ________ rate.
Hyperinflation
Businesses
Law of Demand
Exchange
6. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Tangible Assets
Aggregate Supply
Equilibrium price
Worker mobility
7. A large - unexpected change in the cost of resources.
Output gap
Aggregate supply shock
Pay
Automatic stabilizers
8. Natural Rate of Unemployment - a rate that will always exist
Market equilibrium
Short run equilibrium output
Buyer's surplus
NRU
9. The basic assumption of this model is that in the short run - firms meet demand at present price.
Expansionary policies
Rationing
Four sectors of the economy
Keynesian model
10. The output per employed worker
Free market
Keynesian model
Planned aggregate expenditure (PAE)
Labor productivity
11. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Exchange
Contractionary policies
Participation rate
12. Government policies aimed at stabilizing the economy by eliminating output gaps
Command economic system
Mixed market
Stabilization policies
Participation rate
13. 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.
Contractionary policies
Supply-side policy
Equilibrium price
Gross Domestic Product (GDP)
14. The part of economics study that looks at the operation of a nation's economy as a whole
Pay
Macroeconomics
Sole proprietorship
Contractionary policies
15. The portion of planned aggregate expenditure that is not based on output
Core rate of inflation
Autonomous Expenditure
Business cycle
Rationing
16. Business entity which legally has no separate existence from its owner.
Gross National Product (GNP)
Aggregate supply shock
Sole proprietorship
Real GDP
17. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Congressional budget office
Buyer's surplus
Businesses
Excess Supply
18. The lowest point of the recession
Planned aggregate expenditure (PAE)
Contractionary policies
Inside lag
Trough
19. The movement of workers between jobs - companies - and industries
Worker mobility
Free market
Law of Diminishing Marginal Utility
Invisible hand
20. Goods not counted in the nation's GDP.
Complement
Unemployment insurance
Deflation
Intermediate Goods
21. Combines pure market and command. Example: Japan
Phillips curve
Outside lag
Mixed market
Intangible Assets
22. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Capital income
Capital goods
Short run equilibrium output
Inflationary gap
23. (n) something of value; a resource; an advantage
Short run equilibrium output
Policy reaction function
Asset
Law of Diminishing Marginal Utility
24. 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.
Aggregation
Normative analysis
Gross National Product (GNP)
Equilibrium price
25. The government office that is responsible for projecting federal surpluses and deficits
Liquidity
AD curve intersects the SAS curve
Congressional budget office
Consumption
26. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Law of Demand
Indexing
Worker mobility
Keynesian economic theory
27. Maximum price that a customer is willing to pay for a good
Intermediate Goods
Reservation price
Stabilization policies
Supply-side policy
28. Goods like food and clothing that have a short lifespan.
Structural unemployment
Consumer Nondurables
Income
Inflation
29. The time period between a policy's implementation and its desired effects on an economy.
Buyer's surplus
Labor supply
Anchored inflation expectations
Outside lag
30. The labor sector highlights the rate of ____ .
The rate of inflation
Seller's reservation price
Pay
Asset
31. A result of there only being one buyer of a resource input - good - or service.
The rate of inflation
Monopsony
AD curve intersects the SAS curve
Labor supply
32. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Command economic system
Potential output
Substitution effect
Fractional
33. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
LRAS
Output gap
decreases increases
Policy reaction function
34. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Liquidity
Potential output
Income
35. Government policies intended to increase spending and output.
Expansionary policies
Sole proprietorship
Unemployment insurance
Macroeconomics
36. The maximum amount that an economy can output over a period of time
Potential output
Structural unemployment
Seller's reservation price
Socially optimal quantity
37. When the people believe that the nation's central bank will keep inflation rates low.
Credibility of monetary policy
Expansionary policies
Free market
Automatic stabilizers
38. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal
Real GDP
Frictional unemployment
Labor unions
Disinflation
39. Describes how the economy directly effects the actions policymakers take.
Seller's surplus
Intangible Assets
Law of Supply
Policy reaction function
40. The monetary sector focuses on the ________ rate.
Monopsony
Inflationary gap
Interest
Cyclical unemployment
41. The difference between the price received by the seller and the seller's reservation price
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42. The speed that money changes hands in order to buy and sell final goods and services.
Buyer's surplus
Participation rate
Monetarism
Velocity
43. Organizations that act as moderators between employers and employees
Labor supply
Labor unions
LRAS
Laffer curve
44. The total value of goods and services produced in a country valued at current prices.
Nominal GDP
Business cycle
Excess Supply
Socially optimal quantity
45. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Lorenz curve
Rationing
Keynesian model
46. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Short run equilibrium output
Indexing
Recession
Aggregate demand
47. 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.
Law of Demand
Income
Total surplus
Substitution effect
48. The real cost of changing a listed price.
Menu cost
Price level
Quantity equation
Phillips curve
49. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Invisible hand
Gross National Product (GNP)
Worker mobility
50. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Price
Credibility of monetary policy
Economic efficiency
Congressional budget office