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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 ease with which an asset can be converted to currency.






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






3. When inflation suddenly deviates from its normal course.






4. 1 percent more unemployment results in 2 percent less output.

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5. Maximum price that a customer is willing to pay for a good






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






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






8. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






9. 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).






10. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






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






12. Combines pure market and command. Example: Japan






13. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






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






15. 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.






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






17. 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.






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






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






20. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






21. Patents - Goodwill - and Trademarks (lack physical substance)






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






23. Extreme economic growth






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






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






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






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






28. The output per employed worker






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






30. Organizations that act as moderators between employers and employees






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






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






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






34. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






35. The continuing increase in the average level of prices of goods and services over time.






36. That efficiency leads to economic prosperity for all.






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






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






39. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






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






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






42. Used in the production of final goods - but instead of being consumed - are available for reuse.






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






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






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






46. 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






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






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






49. 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.






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