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Test your basic knowledge |
CLEP Macroeconomics - 3
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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 monetary sector focuses on the ________ rate.
Pay
Interest
Peak
Cyclical unemployment
2. Real Estate - Equipment - and Cash (physical assets)
Consumer Nondurables
Economic efficiency
Tangible Assets
Aggregate supply
3. The time between the need for a macroeconomic policy and its implementation
Velocity
Market equilibrium
Inside lag
Adam Smith
4. 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.
Trough
Command economic system
LRAS
Core rate of inflation
5. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Cyclical unemployment
Expansionary policies
Marginal benefit
Free market
6. The government office that is responsible for projecting federal surpluses and deficits
Keynesian economic theory
Price
Congressional budget office
Free market
7. The speed that money changes hands in order to buy and sell final goods and services.
Market equilibrium
Anchored inflation expectations
Velocity
Price
8. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Hyperinflation
Income
Structural unemployment
Peak
9. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
decreases increases
Labor supply
Business cycle
The real GDP per person
10. When inflation suddenly deviates from its normal course.
Adam Smith
Capital goods
Inflation shock
Inflation inertia
11. 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
Keynesian model
Indexing
Total surplus
Real GDP
12. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Cyclical unemployment
Command economic system
Short run equilibrium output
13. Organizations that act as moderators between employers and employees
decreases increases
Gross National Product (GNP)
Labor unions
Recession
14. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
Laffer curve
Adam Smith
Rationing
15. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Fractional
Aggregate demand
Fisher effect
Congressional budget office
16. Goods that are used in the production of final goods.
Capitalism
Quantity equation
Intermediate goods
Business cycle
17. (n) something of value; a resource; an advantage
Asset
Quantity equation
Intermediate goods
Excess Supply
18. 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.
Intermediate goods
Real employment
Labor unions
Expansionary policies
19. The annual percentage rate of change in price level reflected by price indexes
Interest
The rate of inflation
Phillips curve
Consumption
20. The adding up of individual economic variables to obtain a large - general picture of the economy.
Trough
Aggregation
Nominal GDP
Velocity
21. The rate of price increase on all things except food and energy
Gross Domestic Product (GDP)
Core rate of inflation
Fisher effect
Socially optimal quantity
22. The increase in total cost that comes from producing one additional unit of a specific good or service.
Structural policy
Marginal cost
Autonomous Expenditure
Consumption function
23. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Normative analysis
Outside lag
Four sectors of the economy
24. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
Expansionary policies
Worker mobility
Marginal tax rate
25. Total supply of goods and services in an economy
Aggregate supply
Outside lag
Liquidity
Sunk cost
26. The international sector emphasizes the ________ rate.
Excess Supply
Gross Domestic Product (GDP)
Exchange
Intangible Assets
27. 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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28. The relationship between disposable income and spending on consumable goods and services
Policy reaction function
Rationing
Corporation
Consumption function
29. Represents the governmental tax rate that will best maximize tax revenues.
Laffer curve
Sunk cost
The principle of efficiency
Output gap
30. 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.
The rate of inflation
Business cycle
Law of Supply
Law of Demand
31. The time period between a policy's implementation and its desired effects on an economy.
Outside lag
Capital goods
Quantity equation
Indexing
32. 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
Contractionary policies
Laffer curve
Substitution effect
Monetarism
33. The difference between the price received by the seller and the seller's reservation price
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34. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Aggregation
Pay
Complement
35. Government policies intended to increase spending and output.
NRU
Laffer curve
Expansionary policies
Command economic system
36. Maximum price that a customer is willing to pay for a good
LRAS
Quantity equation
Law of Diminishing Marginal Utility
Reservation price
37. Total tax paid divided by total (taxable) income - as a percentage.
Monopsony
Gross Domestic Product (GDP)
Average tax rate
Inflation inertia
38. The price of a good or service in relation to the price of other goods and services.
Relative price
Inflation shock
Invisible hand
Structural policy
39. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Labor productivity
Fisher effect
Peak
40. The degree to which people have access to goods and services that make their lives better.
Inflation inertia
Standard of living
Aggregate supply
Inside lag
41. The percentage of working-age people within the labor force
Liquidity
Participation rate
Congressional budget office
Potential output
42. A free market system that relies on private property ownership and supply and demand
Nominal GDP
Boom
Capitalism
Aggregate supply shock
43. When an economic unit makes more than it spends
Real employment
Normative analysis
Saving
Aggregate supply shock
44. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Structural unemployment
Invisible hand
Substitution effect
Adam Smith
45. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Disinflation
LRAS
Anchored inflation expectations
46. An increase in spending due to a perceived increase in wealth.
Recession
Aggregate demand
The Wealth Effect
Aggregate supply
47. Goods and services sector - Labor sector - monetary sector - international sector.
Contractionary policies
Unemployment insurance
Four sectors of the economy
Gross Domestic Product (GDP)
48. When the people believe that the nation's central bank will keep inflation rates low.
Asset
Credibility of monetary policy
Anchored inflation expectations
Consumer Nondurables
49. Combines pure market and command. Example: Japan
Law of Supply
Labor unions
Automatic stabilizers
Mixed market
50. The basic assumption of this model is that in the short run - firms meet demand at present price.
Seller's reservation price
AD curve intersects the SAS curve
Credibility of monetary policy
Keynesian model