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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 level of output where output equals planned aggregate expenditure






2. 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






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






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






5. 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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6. Money multiplied by velocity equals nominal GDP.






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






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






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






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






11. 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.






12. The monetary sector focuses on the ________ rate.






13. The percentage of working-age people within the labor force






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






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






16. 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.






17. A policy that affects potential output






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






19. 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






20. When the people believe that the nation's central bank will keep inflation rates low.






21. The difference between the price received by the seller and the seller's reservation price

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22. 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).






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






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






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






26. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






27. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






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






29. 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.






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






31. The part of economics study that looks at the operation of a nation's economy as a whole






32. Extreme economic growth






33. Organizations that act as moderators between employers and employees






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






35. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






36. The lowest point of the recession






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






38. Goods that are used in the production of final goods.






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






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






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






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






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






44. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






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






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






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






48. The real cost of changing a listed price.






49. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






50. Total supply of goods and services in an economy