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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. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Structural unemployment
Potential output
Total surplus
Economic efficiency
2. 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
Economic efficiency
Corporation
Real GDP
Labor productivity
3. The monetary sector focuses on the ________ rate.
Monopsony
Interest
Frictional unemployment
Labor productivity
4. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Worker mobility
Inflation shock
Complement
Fisher effect
5. When the rate of inflation is extremely high.
Hyperinflation
Seller's surplus
Aggregate Supply
Stabilization policies
6. The price of a good or service in relation to the price of other goods and services.
Aggregation
Exchange
Tangible Assets
Relative price
7. Government policies aimed at stabilizing the economy by eliminating output gaps
Inflation
Excess Supply
LRAS
Stabilization policies
8. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Aggregation
Recession
Disinflation
Macroeconomics
9. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Inflation
Contractionary policies
Credibility of monetary policy
10. The movement of workers between jobs - companies - and industries
Monetarism
Worker mobility
Planned aggregate expenditure (PAE)
Law of Diminishing Marginal Utility
11. 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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12. The portion of planned aggregate expenditure that is not based on output
The Wealth Effect
Autonomous Expenditure
Aggregate Supply
Intermediate goods
13. The difference between the price received by the seller and the seller's reservation price
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14. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Consumer Nondurables
Sunk cost
Law of Demand
15. An increase in spending due to a perceived increase in wealth.
Outside lag
Liquidity
Trough
The Wealth Effect
16. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Invisible hand
Interest
Mixed market
Structural unemployment
17. The percentage of working-age people within the labor force
Participation rate
Exchange
Inflation inertia
Standard of living
18. A policy that affects potential output
Quantity equation
Sole proprietorship
Invisible hand
Supply-side policy
19. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Consumer Nondurables
Output gap
Inflation shock
Planned aggregate expenditure (PAE)
20. Patents - Goodwill - and Trademarks (lack physical substance)
Intangible Assets
Aggregate Supply
Marginal tax rate
Fractional
21. 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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22. The relationship between disposable income and spending on consumable goods and services
Fractional
Consumption function
Command economic system
Unemployment insurance
23. The adding up of individual economic variables to obtain a large - general picture of the economy.
Real quantity
Businesses
Inflationary gap
Aggregation
24. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Participation rate
Quantity equation
Aggregate supply
decreases increases
25. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Labor productivity
Average tax rate
Fisher effect
Indexing
26. Used to demonstrate shifts in income distribution among a population over time.
Normative analysis
Lorenz curve
Labor productivity
The principle of efficiency
27. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Liquidity
Marginal tax rate
LRAS
Businesses
28. The total planned spending on final goods and services.
Corporation
Planned aggregate expenditure (PAE)
Peak
LRAS
29. Maximum price that a customer is willing to pay for a good
Traditional economic system
Capital goods
Laffer curve
Reservation price
30. 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.
Sunk cost
Inflationary gap
Peak
Automatic stabilizers
31. When inflation suddenly deviates from its normal course.
Labor productivity
Gross National Product (GNP)
Inflation shock
Keynesian economic theory
32. Caused by changes in the overall economy.
Cyclical unemployment
Inside lag
Sole proprietorship
Law of Diminishing Marginal Utility
33. The maximum amount that an economy can output over a period of time
Businesses
Exchange
Marginal tax rate
Potential output
34. Payments that the government makes to unemployed workers.
Seller's reservation price
Mixed market
Unemployment insurance
Traditional economic system
35. Concerned with analyzing whether or not a policy should be used.
Law of Demand
Corporation
Normative analysis
Seller's surplus
36. The government office that is responsible for projecting federal surpluses and deficits
Monopsony
Congressional budget office
Business cycle
Policy reaction function
37. The international sector emphasizes the ________ rate.
Exchange
Real GDP
Asset
Buyer's surplus
38. The time period between a policy's implementation and its desired effects on an economy.
Substitution bias
Standard of living
Outside lag
Worker mobility
39. A record of economic increases and decreases over time.
Sole proprietorship
Business cycle
Autonomous Expenditure
Marginal benefit
40. 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
Keynesian model
Price
Planned aggregate expenditure (PAE)
Monetarism
41. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Keynesian economic theory
Capitalism
Inflation
Structural policy
42. 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.
Marginal benefit
Gross Domestic Product (GDP)
Invisible hand
NRU
43. The rate of price increase on all things except food and energy
Core rate of inflation
Deflation
Complement
Free market
44. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
The quality adjustment bias
Capital goods
Worker mobility
Okun's Law
45. The level of output where output equals planned aggregate expenditure
Substitution effect
Frictional unemployment
Short run equilibrium output
Sole proprietorship
46. 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.
Law of Supply
Income
Labor supply
Command economic system
47. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Exchange
Business cycle
Keynesian model
AD curve intersects the SAS curve
48. An increase in this would cause an increase in the aggregate supply
Invisible hand
Seller's reservation price
Labor productivity
Free market
49. A Scottish man (1723-1790) who is known as the father of modern economics.
Equilibrium price
Inflation inertia
Adam Smith
Inflationary gap
50. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Gross National Product (GNP)
Boom
Buyer's surplus
Structural unemployment