Test your basic knowledge |

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. When inflation suddenly deviates from its normal course.






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






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






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






5. When the rate of inflation is extremely high.






6. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






7. Organizations that act as moderators between employers and employees






8. The beginning of a recession






9. The total value of goods and services produced in a country valued at current prices.






10. Money multiplied by velocity equals nominal GDP.






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






12. The goods and services sector focuses largely on the level of ______ .






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






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






15. 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.






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






17. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






18. 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






19. Unicorporated entity that has shared ownership.






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






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






22. Extreme economic growth






23. 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.






24. 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.






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






26. 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.






27. Government policies intended to increase spending and output.






28. (n) something of value; a resource; an advantage






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






30. 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






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






32. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






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






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






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






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






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






39. A quantity that is measured in real terms - the actual quantity of a good or service






40. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.






41. 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.






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






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






44. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






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






46. The international sector emphasizes the ________ rate.






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






48. 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).






49. 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.






50. The output per employed worker