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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
AD curve intersects the SAS curve
Average tax rate
Market equilibrium
Outside lag
2. 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.
Frictional unemployment
Consumption function
Automatic stabilizers
Total surplus
3. 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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4. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Intangible Assets
Free market
Gross Domestic Product (GDP)
Normative analysis
5. An increase in this would cause an increase in the aggregate supply
Price level
Planned aggregate expenditure (PAE)
Output gap
Labor productivity
6. The continuing increase in the average level of prices of goods and services over time.
Contractionary policies
Inflation
Marginal tax rate
Capitalism
7. A large - unexpected change in the cost of resources.
Aggregate supply shock
Outside lag
Keynesian model
Reservation price
8. A record of economic increases and decreases over time.
Business cycle
Relative price
Rationing
Labor productivity
9. Patents - Goodwill - and Trademarks (lack physical substance)
Intangible Assets
Labor productivity
Traditional economic system
Law of Diminishing Marginal Utility
10. Concerned with analyzing whether or not a policy should be used.
Marginal cost
Normative analysis
Asset
Consumer Nondurables
11. The relationship between disposable income and spending on consumable goods and services
Price
Consumption function
Aggregate demand
Nominal GDP
12. When people's expectations of future inflation do not change even though inflation rates change.
Outside lag
Planned aggregate expenditure (PAE)
Anchored inflation expectations
Exchange
13. The lowest point of the recession
Structural policy
Real employment
Short run equilibrium output
Trough
14. A result of there only being one buyer of a resource input - good - or service.
Monopsony
The principle of efficiency
Marginal cost
Businesses
15. The total planned spending on final goods and services.
Socially optimal quantity
Planned aggregate expenditure (PAE)
Peak
Laffer curve
16. Describes how the economy directly effects the actions policymakers take.
Policy reaction function
Seller's surplus
Boom
Socially optimal quantity
17. An increase in spending due to a perceived increase in wealth.
Normative analysis
The Wealth Effect
Economic efficiency
Aggregate demand
18. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Real employment
Structural unemployment
Frictional unemployment
Output gap
19. Natural Rate of Unemployment - a rate that will always exist
Fisher effect
Tangible Assets
NRU
Keynesian model
20. Used to demonstrate shifts in income distribution among a population over time.
Boom
Lorenz curve
The rate of inflation
Average tax rate
21. Organizations that act as moderators between employers and employees
Disinflation
Aggregation
Autonomous Expenditure
Labor unions
22. Most free-market banking systems are based on __________ reserves.
Seller's surplus
Fractional
Traditional economic system
Labor productivity
23. 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.
Equilibrium price
decreases increases
Gross Domestic Product (GDP)
Real GDP
24. Goods and services sector - Labor sector - monetary sector - international sector.
Keynesian model
Laffer curve
Four sectors of the economy
Complement
25. The total value of goods and services produced in a country valued at current prices.
Seller's surplus
Nominal GDP
Inflation shock
Autonomous Expenditure
26. The ease with which an asset can be converted to currency.
Keynesian economic theory
Monopsony
Liquidity
Outside lag
27. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Structural unemployment
Intermediate Goods
Rationing
Income
28. (n) something of value; a resource; an advantage
Okun's Law
Asset
Relative price
The Wealth Effect
29. A Scottish man (1723-1790) who is known as the father of modern economics.
Credibility of monetary policy
Stabilization policies
Aggregate Supply
Adam Smith
30. A macroeconomic policy that directly affects the structure and various institutions of an economy
Structural policy
Lorenz curve
Aggregate supply
Seller's surplus
31. 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.
Labor supply
Potential output
Indexing
Command economic system
32. When there is no cyclical unemployment and every person who wishes to work is able to find a job at the prevailing rate for wages and in the prevailing working conditions.
Relative price
Socially optimal quantity
Real employment
Participation rate
33. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Law of Demand
Lorenz curve
Labor supply
34. When inflation suddenly deviates from its normal course.
Law of Supply
Intermediate goods
Automatic stabilizers
Inflation shock
35. Goods that are used in the production of final goods.
Peak
Laffer curve
Potential output
Intermediate goods
36. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
Asset
Total surplus
Rationing
37. 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.
Deflation
Interest
Laffer curve
Traditional economic system
38. The time period between a policy's implementation and its desired effects on an economy.
Boom
Mixed market
Normative analysis
Outside lag
39. Combines pure market and command. Example: Japan
The real GDP per person
Mixed market
Autonomous Expenditure
Fisher effect
40. 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
Invisible hand
Keynesian model
Real GDP
Law of Supply
41. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Price
Inflation shock
Excess Supply
Structural policy
42. When prices fall consistently over time - leading to negative inflation.
Deflation
Real GDP
Macroeconomics
Total surplus
43. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
Okun's Law
The Wealth Effect
Quantity equation
44. 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.
Rationing
Inflation shock
Peak
Contractionary policies
45. When an economic unit makes more than it spends
Aggregate demand
Unemployment insurance
Inflation
Saving
46. The increase in total benefit that comes from producing one additional unit.
Okun's Law
Substitution effect
Menu cost
Marginal benefit
47. The portion of planned aggregate expenditure that is not based on output
Pay
Autonomous Expenditure
Tangible Assets
Law of Diminishing Marginal Utility
48. When the rate of inflation is extremely high.
Intangible Assets
Four sectors of the economy
Anchored inflation expectations
Hyperinflation
49. 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.
Labor productivity
Capital goods
Autonomous Expenditure
Equilibrium price
50. 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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