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






2. Goods not counted in the nation's GDP.






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






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






5. That efficiency leads to economic prosperity for all.






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






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






8. The goods and services sector focuses largely on the level of ______ .






9. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






10. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






11. The government office that is responsible for projecting federal surpluses and deficits






12. Payments that the government makes to unemployed workers.






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






14. When an economic unit makes more than it spends






15. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






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






17. The time period between a policy's implementation and its desired effects on an economy.






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






19. Total supply of goods and services in an economy






20. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






21. A Scottish man (1723-1790) who is known as the father of modern economics.






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






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






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






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






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






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






28. The amount of workers that are willing to work for a real wage.






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






30. The total planned spending on final goods and services.






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






32. Used to demonstrate shifts in income distribution among a population over time.






33. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






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






35. The price of a good or service in relation to the price of other goods and services.






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






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






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






39. 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






40. A quantity that is measured in real terms - the actual quantity of a good or service






41. 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.






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






43. 1 percent more unemployment results in 2 percent less output.

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






45. A free market system that relies on private property ownership and supply and demand






46. Maximum price that a customer is willing to pay for a good






47. Combines pure market and command. Example: Japan






48. Used in the production of final goods - but instead of being consumed - are available for reuse.






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






50. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.