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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. Government policies aimed at stabilizing the economy by eliminating output gaps
Mixed market
Stabilization policies
Seller's reservation price
Excess Supply
2. The total value of goods and services produced in a country valued at current prices.
Socially optimal quantity
Nominal GDP
Liquidity
The Wealth Effect
3. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Consumer Nondurables
Disinflation
Output gap
Structural policy
4. Total tax paid divided by total (taxable) income - as a percentage.
Command economic system
Market equilibrium
Average tax rate
Policy reaction function
5. The maximum amount that an economy can output over a period of time
Reservation price
Potential output
Frictional unemployment
Real quantity
6. The difference between the price received by the seller and the seller's reservation price
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7. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Worker mobility
Autonomous Expenditure
Supply-side policy
8. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
AD curve intersects the SAS curve
Recession
Aggregate supply
Buyer's surplus
9. The speed that money changes hands in order to buy and sell final goods and services.
Output gap
Unemployment insurance
LRAS
Velocity
10. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Saving
Velocity
AD curve intersects the SAS curve
Equilibrium price
11. The government office that is responsible for projecting federal surpluses and deficits
Consumption
Congressional budget office
Structural policy
Phillips curve
12. 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
Socially optimal quantity
Free market
Monetarism
Peak
13. Goods like food and clothing that have a short lifespan.
Law of Diminishing Marginal Utility
Consumer Nondurables
Substitution effect
Consumption
14. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Rationing
The principle of efficiency
Capital income
Law of Supply
15. Government policies intended to increase spending and output.
Expansionary policies
Invisible hand
Normative analysis
Planned aggregate expenditure (PAE)
16. A Scottish man (1723-1790) who is known as the father of modern economics.
Gross Domestic Product (GDP)
Outside lag
Adam Smith
Seller's reservation price
17. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Asset
Capital income
Rationing
Indexing
18. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
Keynesian model
Reservation price
Macroeconomics
19. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Trough
Consumption function
Contractionary policies
20. The basic assumption of this model is that in the short run - firms meet demand at present price.
Output gap
Consumption function
Menu cost
Keynesian model
21. The part of economics study that looks at the operation of a nation's economy as a whole
Normative analysis
NRU
Macroeconomics
Capitalism
22. The amount of workers that are willing to work for a real wage.
Law of Demand
Labor supply
Buyer's surplus
Seller's reservation price
23. 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).
Frictional unemployment
Relative price
Core rate of inflation
Normative analysis
24. The lowest point of the recession
Trough
The rate of inflation
Core rate of inflation
Labor productivity
25. When the rate of inflation is extremely high.
Economic efficiency
Anchored inflation expectations
Real GDP
Hyperinflation
26. Money multiplied by velocity equals nominal GDP.
Monopsony
Law of Diminishing Marginal Utility
Quantity equation
Invisible hand
27. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Consumer Nondurables
decreases increases
Standard of living
28. 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.
NRU
Output gap
Seller's surplus
Equilibrium price
29. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Phillips curve
Equilibrium price
Real employment
Law of Demand
30. A policy that affects potential output
decreases increases
Boom
Aggregate supply shock
Supply-side policy
31. An increase in spending due to a perceived increase in wealth.
Free market
Sunk cost
Credibility of monetary policy
The Wealth Effect
32. A large - unexpected change in the cost of resources.
Traditional economic system
Aggregate supply shock
Buyer's surplus
Market equilibrium
33. Goods that are used in the production of final goods.
Aggregate Supply
Standard of living
decreases increases
Intermediate goods
34. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Inflation inertia
Command economic system
Potential output
35. The total planned spending on final goods and services.
Substitution effect
Planned aggregate expenditure (PAE)
Okun's Law
Real quantity
36. When prices fall consistently over time - leading to negative inflation.
Law of Demand
Deflation
Output gap
Autonomous Expenditure
37. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Substitution effect
Marginal benefit
Capital income
Buyer's surplus
38. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
Consumption
Inflationary gap
Deflation
39. The time period between a policy's implementation and its desired effects on an economy.
Autonomous Expenditure
Outside lag
Relative price
Monetarism
40. The adding up of individual economic variables to obtain a large - general picture of the economy.
Inflation inertia
Aggregation
Capitalism
Saving
41. Unicorporated entity that has shared ownership.
Consumer Nondurables
Complement
Four sectors of the economy
Partnership
42. The annual percentage rate of change in price level reflected by price indexes
The rate of inflation
Aggregate supply
Gross National Product (GNP)
Phillips curve
43. Caused by changes in the overall economy.
Complement
Labor unions
Capital income
Cyclical unemployment
44. 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
Monopsony
Average tax rate
Peak
45. Payments that the government makes to unemployed workers.
Congressional budget office
Unemployment insurance
Marginal benefit
Laffer curve
46. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Recession
LRAS
Economic efficiency
Supply-side policy
47. When both producers and consumers are satisfied with their quantities at market price.
Market equilibrium
Marginal cost
Structural unemployment
Supply-side policy
48. The degree to which people have access to goods and services that make their lives better.
Inside lag
Standard of living
Partnership
Inflation shock
49. A quantity that is measured in real terms - the actual quantity of a good or service
Aggregation
Partnership
Real quantity
Law of Demand
50. Concerned with analyzing whether or not a policy should be used.
Fisher effect
Socially optimal quantity
Relative price
Normative analysis