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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. A measure of overall price levels at a specific point in the price index.






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






3. 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).






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






5. The beginning of a recession






6. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






7. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






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






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






10. Total tax paid divided by total (taxable) income - as a percentage.






11. A policy that affects potential output






12. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






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






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






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






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






17. Caused by changes in the overall economy.






18. The real cost of changing a listed price.






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






20. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






21. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






22. The labor sector highlights the rate of ____ .






23. The adding up of individual economic variables to obtain a large - general picture of the economy.






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






25. 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.






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






27. 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.






28. The degree to which people have access to goods and services that make their lives better.






29. A record of economic increases and decreases over time.






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






31. The output per employed worker






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






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






35. 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.






36. The rise in taxes that occurs when before-tax income increases by one dollar






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






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






39. Organizations that act as moderators between employers and employees






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






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






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






43. An increase in this would cause an increase in the aggregate supply






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






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






46. Total supply of goods and services in an economy






47. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






48. The percentage of working-age people within the labor force






49. 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






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