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Test your basic knowledge |
CLEP Macroeconomics - 3
Start Test
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. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Recession
Invisible hand
Income
Seller's reservation price
2. The level of output where output equals planned aggregate expenditure
Aggregate demand
Consumption
Gross National Product (GNP)
Short run equilibrium output
3. 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
Supply-side policy
Equilibrium price
Monetarism
Labor unions
4. 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.
Short run equilibrium output
Mixed market
Socially optimal quantity
Command economic system
5. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Normative analysis
Disinflation
Boom
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.
Law of Supply
Gross Domestic Product (GDP)
Reservation price
Economic efficiency
7. Extreme economic growth
Expansionary policies
Boom
Credibility of monetary policy
Price level
8. Legal entity that has received a charter from a state or federal government.
Corporation
Law of Demand
Normative analysis
Aggregate supply
9. Represents the governmental tax rate that will best maximize tax revenues.
Sole proprietorship
Laffer curve
Keynesian model
Rationing
10. Real Estate - Equipment - and Cash (physical assets)
Liquidity
Fractional
Cyclical unemployment
Tangible Assets
11. 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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12. The rate of price increase on all things except food and energy
Command economic system
Stabilization policies
Business cycle
Core rate of inflation
13. The maximum amount that an economy can output over a period of time
Consumption
Cyclical unemployment
Potential output
Capital goods
14. A large - unexpected change in the cost of resources.
Deflation
Trough
Real GDP
Aggregate supply shock
15. The increase in total benefit that comes from producing one additional unit.
Frictional unemployment
Congressional budget office
Sunk cost
Marginal benefit
16. A policy that affects potential output
Command economic system
Intangible Assets
Autonomous Expenditure
Supply-side policy
17. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Automatic stabilizers
Credibility of monetary policy
Fisher effect
Aggregate demand
18. (n) something of value; a resource; an advantage
Unemployment insurance
Asset
Four sectors of the economy
Seller's reservation price
19. The international sector emphasizes the ________ rate.
Velocity
Exchange
Saving
Consumer Nondurables
20. The total planned spending on final goods and services.
Anchored inflation expectations
Core rate of inflation
Inflation shock
Planned aggregate expenditure (PAE)
21. Concerned with analyzing whether or not a policy should be used.
Gross Domestic Product (GDP)
Normative analysis
Aggregate Supply
Quantity equation
22. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Keynesian economic theory
Phillips curve
Nominal GDP
Gross Domestic Product (GDP)
23. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Average tax rate
Structural unemployment
Hyperinflation
Seller's surplus
24. 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.
Businesses
Supply-side policy
Gross Domestic Product (GDP)
Boom
25. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Aggregate supply shock
Disinflation
Relative price
Seller's surplus
26. 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.
Interest
Equilibrium price
Gross Domestic Product (GDP)
Average tax rate
27. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Normative analysis
Marginal benefit
Businesses
Substitution effect
28. The difference between the price received by the seller and the seller's reservation price
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29. A free market system that relies on private property ownership and supply and demand
decreases increases
Capitalism
Intermediate goods
Labor productivity
30. The price of a good or service in relation to the price of other goods and services.
Boom
Relative price
Income
Reservation price
31. 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.
The rate of inflation
Law of Supply
Tangible Assets
Standard of living
32. Goods that are used in the production of final goods.
Marginal cost
Intermediate goods
Sunk cost
Aggregate demand
33. 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.
Substitution effect
Unemployment insurance
Real employment
Pay
34. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Output gap
Sole proprietorship
Substitution bias
Business cycle
35. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
Invisible hand
Complement
Free market
Substitution effect
36. Goods not counted in the nation's GDP.
Inflation shock
Outside lag
Intermediate Goods
Structural policy
37. The real cost of changing a listed price.
Gross Domestic Product (GDP)
Menu cost
The rate of inflation
Normative analysis
38. When inflation suddenly deviates from its normal course.
LRAS
Inflation shock
Stabilization policies
Standard of living
39. A macroeconomic policy that directly affects the structure and various institutions of an economy
Consumption
Aggregate demand
The principle of efficiency
Structural policy
40. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Exchange
Unemployment insurance
Capital goods
Keynesian economic theory
41. The portion of planned aggregate expenditure that is not based on output
Free market
Deflation
Autonomous Expenditure
Labor productivity
42. The part of economics study that looks at the operation of a nation's economy as a whole
Macroeconomics
Standard of living
Automatic stabilizers
Capital goods
43. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Exchange
Okun's Law
Price
Sunk cost
44. The movement of workers between jobs - companies - and industries
Expansionary policies
Worker mobility
Marginal benefit
Aggregate Supply
45. When the people believe that the nation's central bank will keep inflation rates low.
Monopsony
Credibility of monetary policy
Anchored inflation expectations
Aggregate demand
46. Unicorporated entity that has shared ownership.
Partnership
Four sectors of the economy
Average tax rate
Capital income
47. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Real employment
AD curve intersects the SAS curve
Keynesian economic theory
LRAS
48. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Recession
Four sectors of the economy
Excess Supply
AD curve intersects the SAS curve
49. Payments that the government makes to unemployed workers.
Policy reaction function
Unemployment insurance
Real quantity
Indexing
50. Business entity which legally has no separate existence from its owner.
Aggregate supply shock
Core rate of inflation
Sole proprietorship
Socially optimal quantity