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Test your basic knowledge |
CLEP Macroeconomics - 3
Start Test
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. The level of output where output equals planned aggregate expenditure
Aggregation
Sole proprietorship
Expansionary policies
Short run equilibrium output
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
Interest
Monetarism
Inflation inertia
Nominal GDP
3. The annual percentage rate of change in price level reflected by price indexes
The quality adjustment bias
Monopsony
The rate of inflation
Tangible Assets
4. The relationship between disposable income and spending on consumable goods and services
Stabilization policies
Consumption function
Aggregate supply
LRAS
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.
Law of Diminishing Marginal Utility
Quantity equation
The rate of inflation
Output gap
7. Total tax paid divided by total (taxable) income - as a percentage.
Exchange
Average tax rate
The principle of efficiency
The real GDP per person
8. A large - unexpected change in the cost of resources.
Aggregate supply shock
Aggregation
Complement
LRAS
9. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Asset
LRAS
Disinflation
Aggregate demand
10. A macroeconomic policy that directly affects the structure and various institutions of an economy
Laffer curve
Saving
The real GDP per person
Structural policy
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.
Law of Diminishing Marginal Utility
Relative price
Intangible Assets
Law of Supply
12. The monetary sector focuses on the ________ rate.
Excess Supply
Unemployment insurance
Interest
Substitution bias
13. The percentage of working-age people within the labor force
Participation rate
Recession
Congressional budget office
Labor productivity
14. The ease with which an asset can be converted to currency.
Corporation
Deflation
Liquidity
Real GDP
15. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Average tax rate
The real GDP per person
Aggregate Supply
Capitalism
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.
Law of Demand
Intangible Assets
Intermediate goods
Real GDP
17. A policy that affects potential output
LRAS
Consumer Nondurables
Asset
Supply-side policy
18. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Consumption
Inflation shock
LRAS
Keynesian economic theory
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
Autonomous Expenditure
Tangible Assets
Real GDP
Law of Supply
20. When the people believe that the nation's central bank will keep inflation rates low.
Saving
Asset
Inflation shock
Credibility of monetary policy
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).
Marginal tax rate
Market equilibrium
Frictional unemployment
Real GDP
23. A result of there only being one buyer of a resource input - good - or service.
Monopsony
Aggregate demand
Liquidity
Consumption function
24. There is an ___________ ___ when aggregate output is above potential output
Inflationary gap
Price level
Standard of living
Business cycle
25. The total value of goods and services produced in a country valued at current prices.
Socially optimal quantity
Nominal GDP
Free market
Complement
26. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Aggregate Supply
Law of Supply
Seller's surplus
27. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Automatic stabilizers
Complement
Output gap
Monetarism
28. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Structural unemployment
Intermediate goods
Standard of living
Disinflation
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.
Buyer's surplus
Equilibrium price
Anchored inflation expectations
Supply-side policy
30. The continuing increase in the average level of prices of goods and services over time.
Potential output
Inflation
Labor productivity
The real GDP per person
31. The part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
decreases increases
Cyclical unemployment
Average tax rate
32. Extreme economic growth
Anchored inflation expectations
Boom
Marginal tax rate
Intangible Assets
33. Organizations that act as moderators between employers and employees
Keynesian economic theory
Deflation
Labor unions
Sole proprietorship
34. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Capitalism
Consumption function
Menu cost
35. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Deflation
Capital goods
Velocity
Recession
36. The lowest point of the recession
Trough
Phillips curve
Marginal tax rate
Gross National Product (GNP)
37. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Capital income
Disinflation
Keynesian model
Inside lag
38. Goods that are used in the production of final goods.
Contractionary policies
Capitalism
Planned aggregate expenditure (PAE)
Intermediate goods
39. Natural Rate of Unemployment - a rate that will always exist
Inflation shock
NRU
Core rate of inflation
Real quantity
40. The maximum amount that an economy can output over a period of time
The principle of efficiency
Potential output
Command economic system
Traditional economic system
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 .
Velocity
Expansionary policies
Recession
LRAS
42. Goods and services sector - Labor sector - monetary sector - international sector.
Structural policy
Inflation
decreases increases
Four sectors of the economy
43. The portion of planned aggregate expenditure that is not based on output
Aggregate supply shock
Structural unemployment
Output gap
Autonomous Expenditure
44. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Price level
Keynesian economic theory
Inflationary gap
Recession
45. The adding up of individual economic variables to obtain a large - general picture of the economy.
Keynesian economic theory
Aggregation
Structural policy
The Wealth Effect
46. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
AD curve intersects the SAS curve
decreases increases
Deflation
Average tax rate
47. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Socially optimal quantity
Aggregate demand
The quality adjustment bias
Rationing
48. The real cost of changing a listed price.
Menu cost
Price level
Consumption function
Fisher effect
49. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Invisible hand
Complement
Aggregate demand
Inflationary gap
50. Total supply of goods and services in an economy
Aggregate supply
Sole proprietorship
Boom
Total surplus