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






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






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






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






5. 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.






6. 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).






7. Organizations that act as moderators between employers and employees






8. When the rate of inflation is extremely high.






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






10. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






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






13. The labor sector highlights the rate of ____ .






14. The lowest point of the recession






15. The rate of price increase on all things except food and energy






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






17. The increase in total benefit that comes from producing one additional unit.






18. Government policies intended to increase spending and output.






19. The basic assumption of this model is that in the short run - firms meet demand at present price.






20. When an economic unit makes more than it spends






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






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






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






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






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






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






27. The monetary sector focuses on the ________ rate.






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






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






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






31. 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






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






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






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






35. 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.






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






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






38. Total supply of goods and services in an economy






39. 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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40. Extreme economic growth






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






42. When inflation suddenly deviates from its normal course.






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






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






45. Legal entity that has received a charter from a state or federal government.






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






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






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






49. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






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