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






2. The continuing increase in the average level of prices of goods and services over time.






3. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






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






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






6. Goods that are used in the production of final goods.






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






8. 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.






9. A flaw in the CPI that exaggerates real increases in the cost of living by failing to take into account customers ability to choose equally desirable goods or services when the price of their preferred good or service increases






10. When inflation suddenly deviates from its normal course.






11. Total supply of goods and services in an economy






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






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






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






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






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






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






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






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






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






21. The real cost of changing a listed price.






22. When the rate of inflation is extremely high.






23. The monetary sector focuses on the ________ rate.






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






25. Caused by changes in the overall economy.






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






27. The international sector emphasizes the ________ rate.






28. Most free-market banking systems are based on __________ reserves.






29. 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.






30. The annual percentage rate of change in price level reflected by price indexes






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






32. Government policies aimed at stabilizing the economy by eliminating output gaps






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






34. The relationship between disposable income and spending on consumable goods and services






35. An increase in spending due to a perceived increase in wealth.






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






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






38. That efficiency leads to economic prosperity for all.






39. Organizations that act as moderators between employers and employees






40. When an economic unit makes more than it spends






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






42. The lowest point of the recession






43. Unicorporated entity that has shared ownership.






44. Government policies intended to increase spending and output.






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






46. Real Estate - Equipment - and Cash (physical assets)






47. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






48. A policy that affects potential output






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






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