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CLEP Macroeconomics - 3
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Subjects
:
clep
,
economics
Instructions:
Answer 50 questions in 15 minutes.
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Match each statement with the correct term.
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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. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Standard of living
Lorenz curve
Phillips curve
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
Command economic system
Labor productivity
Equilibrium price
Monetarism
3. Most free-market banking systems are based on __________ reserves.
Planned aggregate expenditure (PAE)
Macroeconomics
Substitution bias
Fractional
4. The total value of goods and services produced in a country valued at current prices.
The Wealth Effect
Worker mobility
Velocity
Nominal GDP
5. The degree to which people have access to goods and services that make their lives better.
Substitution bias
Macroeconomics
Inflationary gap
Standard of living
6. The portion of planned aggregate expenditure that is not based on output
Velocity
Hyperinflation
Autonomous Expenditure
Mixed market
7. Caused by changes in the overall economy.
Cyclical unemployment
Intangible Assets
Boom
Indexing
8. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Labor productivity
Traditional economic system
Inflationary gap
9. The beginning of a recession
Consumption function
Capital income
Velocity
Peak
10. A record of economic increases and decreases over time.
Excess Supply
Participation rate
Monetarism
Business cycle
11. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Partnership
Phillips curve
Fisher effect
Corporation
12. Organizations that act as moderators between employers and employees
Equilibrium price
Invisible hand
Real quantity
Labor unions
13. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Total surplus
Core rate of inflation
Laffer curve
Free market
14. There is an ___________ ___ when aggregate output is above potential output
Labor productivity
Equilibrium price
Inflationary gap
Seller's surplus
15. The level of output where output equals planned aggregate expenditure
Automatic stabilizers
Capital income
Real employment
Short run equilibrium output
16. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Stabilization policies
Rationing
Keynesian model
Capital income
17. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Fractional
Real quantity
Capital income
Economic efficiency
18. Natural Rate of Unemployment - a rate that will always exist
Okun's Law
Menu cost
Exchange
NRU
19. 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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20. An increase in spending due to a perceived increase in wealth.
AD curve intersects the SAS curve
Anchored inflation expectations
Economic efficiency
The Wealth Effect
21. When inflation suddenly deviates from its normal course.
Free market
Inflation shock
Buyer's surplus
The rate of inflation
22. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Aggregate demand
LRAS
Businesses
Fisher effect
23. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Recession
The rate of inflation
Consumer Nondurables
24. When both producers and consumers are satisfied with their quantities at market price.
Intermediate Goods
Velocity
Market equilibrium
Business cycle
25. Goods not counted in the nation's GDP.
Aggregation
Keynesian economic theory
Four sectors of the economy
Intermediate Goods
26. The total planned spending on final goods and services.
Real GDP
Labor supply
Planned aggregate expenditure (PAE)
Real employment
27. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Price
Rationing
Policy reaction function
Nominal GDP
28. The movement of workers between jobs - companies - and industries
Real employment
Worker mobility
The Wealth Effect
Reservation price
29. 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.
Invisible hand
Contractionary policies
Anchored inflation expectations
Standard of living
30. Unicorporated entity that has shared ownership.
Contractionary policies
Intermediate Goods
Monetarism
Partnership
31. Combines pure market and command. Example: Japan
Credibility of monetary policy
Mixed market
NRU
Market equilibrium
32. The monetary sector focuses on the ________ rate.
Supply-side policy
Buyer's surplus
Interest
Income
33. When prices fall consistently over time - leading to negative inflation.
Equilibrium price
Real employment
Trough
Deflation
34. The increase in total cost that comes from producing one additional unit of a specific good or service.
Inflation inertia
Command economic system
Rationing
Marginal cost
35. Goods like food and clothing that have a short lifespan.
AD curve intersects the SAS curve
Interest
Consumer Nondurables
Menu cost
36. Total tax paid divided by total (taxable) income - as a percentage.
Sole proprietorship
Okun's Law
Average tax rate
Aggregate Supply
37. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Mixed market
Socially optimal quantity
Buyer's surplus
38. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
AD curve intersects the SAS curve
Seller's surplus
Businesses
39. The adding up of individual economic variables to obtain a large - general picture of the economy.
Recession
Aggregation
Congressional budget office
Total surplus
40. 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
Marginal tax rate
Buyer's surplus
Capitalism
41. The rate of price increase on all things except food and energy
Core rate of inflation
Recession
Structural policy
Exchange
42. When the rate of inflation is extremely high.
Hyperinflation
Relative price
Consumer Nondurables
Consumption
43. Represents the governmental tax rate that will best maximize tax revenues.
Laffer curve
Inflation
Sunk cost
Standard of living
44. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Keynesian economic theory
Interest
Sole proprietorship
45. An increase in this would cause an increase in the aggregate supply
Seller's surplus
Keynesian economic theory
Labor productivity
Marginal cost
46. Payments that the government makes to unemployed workers.
AD curve intersects the SAS curve
Unemployment insurance
Anchored inflation expectations
Potential output
47. Goods that are used in the production of final goods.
Corporation
The Wealth Effect
Intermediate goods
Substitution effect
48. Used to demonstrate shifts in income distribution among a population over time.
Inflationary gap
Consumption
Command economic system
Lorenz curve
49. That efficiency leads to economic prosperity for all.
Contractionary policies
Free market
Price level
The principle of efficiency
50. Extreme economic growth
Real quantity
Aggregation
Boom
Core rate of inflation
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