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






2. When inflation suddenly deviates from its normal course.






3. Total supply of goods and services in an economy






4. The output per employed worker






5. When the rate of inflation is extremely high.






6. The slow change in inflation from year to year in industrialized nations






7. The monetary sector focuses on the ________ rate.






8. Payments that the government makes to unemployed workers.






9. 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.






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






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






12. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






13. Legal entity that has received a charter from a state or federal government.






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






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






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






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






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






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






20. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






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






22. That efficiency leads to economic prosperity for all.






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






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






25. A policy that affects potential output






26. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost

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27. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






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






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






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






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






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






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






34. Represents the governmental tax rate that will best maximize tax revenues.






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






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






37. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






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






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






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






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






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






43. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






44. 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






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






46. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






47. The lowest point of the recession






48. Goods and services sector - Labor sector - monetary sector - international sector.






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






50. Government policies intended to increase spending and output.