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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. Goods and services sector - Labor sector - monetary sector - international sector.
Four sectors of the economy
Gross National Product (GNP)
Deflation
Aggregate Supply
2. Represents the governmental tax rate that will best maximize tax revenues.
Four sectors of the economy
Laffer curve
Consumption function
Labor productivity
3. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Autonomous Expenditure
Saving
Equilibrium price
4. Caused by changes in the overall economy.
Participation rate
Congressional budget office
Inflation inertia
Cyclical unemployment
5. When the rate of inflation is extremely high.
Hyperinflation
Recession
Labor productivity
Excess Supply
6. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
The rate of inflation
Quantity equation
Disinflation
Inflationary gap
7. 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).
Frictional unemployment
Partnership
Equilibrium price
Intangible Assets
8. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Economic efficiency
Price
Gross National Product (GNP)
Inflationary gap
9. When inflation suddenly deviates from its normal course.
Inflation shock
Structural unemployment
Fractional
Traditional economic system
10. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Average tax rate
Aggregate Supply
Gross National Product (GNP)
Economic efficiency
11. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Average tax rate
decreases increases
Monopsony
Business cycle
12. The part of economics study that looks at the operation of a nation's economy as a whole
Labor unions
Macroeconomics
Quantity equation
Corporation
13. A quantity that is measured in real terms - the actual quantity of a good or service
The quality adjustment bias
Real quantity
Short run equilibrium output
Businesses
14. An increase in this would cause an increase in the aggregate supply
Gross Domestic Product (GDP)
Labor productivity
Interest
Total surplus
15. 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
Trough
Substitution bias
Tangible Assets
Disinflation
16. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Keynesian economic theory
Average tax rate
Phillips curve
Fisher effect
17. The portion of planned aggregate expenditure that is not based on output
Rationing
Capital goods
Inside lag
Autonomous Expenditure
18. 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
Price
Monopsony
Deflation
19. The continuing increase in the average level of prices of goods and services over time.
Stabilization policies
Inflation
Monopsony
Economic efficiency
20. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Policy reaction function
Capital income
Rationing
Quantity equation
21. Real Estate - Equipment - and Cash (physical assets)
Price level
Tangible Assets
Consumer Nondurables
LRAS
22. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.
decreases increases
Quantity equation
The rate of inflation
Invisible hand
23. Total tax paid divided by total (taxable) income - as a percentage.
Price
Automatic stabilizers
Quantity equation
Average tax rate
24. The increase in total benefit that comes from producing one additional unit.
Marginal benefit
Consumption
Participation rate
decreases increases
25. Used to demonstrate shifts in income distribution among a population over time.
Anchored inflation expectations
Lorenz curve
Boom
Gross Domestic Product (GDP)
26. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Worker mobility
Aggregate Supply
LRAS
Partnership
27. The movement of workers between jobs - companies - and industries
Worker mobility
Supply-side policy
Capitalism
Trough
28. Total supply of goods and services in an economy
Marginal cost
Recession
Traditional economic system
Aggregate supply
29. Patents - Goodwill - and Trademarks (lack physical substance)
Capitalism
Intangible Assets
Contractionary policies
Autonomous Expenditure
30. The difference between the price received by the seller and the seller's reservation price
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31. The amount of workers that are willing to work for a real wage.
Labor supply
Excess Supply
Outside lag
Capital goods
32. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Gross Domestic Product (GDP)
Keynesian model
The quality adjustment bias
Aggregate supply
33. The time period between a policy's implementation and its desired effects on an economy.
Planned aggregate expenditure (PAE)
Mixed market
Aggregate supply shock
Outside lag
34. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian economic theory
Keynesian model
Fisher effect
Asset
35. 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.
Gross Domestic Product (GDP)
Traditional economic system
Aggregation
Autonomous Expenditure
36. Goods like food and clothing that have a short lifespan.
Law of Diminishing Marginal Utility
Consumer Nondurables
Nominal GDP
Potential output
37. The price of a good or service in relation to the price of other goods and services.
Tangible Assets
Partnership
Relative price
Average tax rate
38. The rise in taxes that occurs when before-tax income increases by one dollar
Credibility of monetary policy
Output gap
Real employment
Marginal tax rate
39. The time between the need for a macroeconomic policy and its implementation
Substitution effect
Macroeconomics
Inside lag
Disinflation
40. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
The real GDP per person
Intermediate goods
NRU
Businesses
41. A record of economic increases and decreases over time.
Structural policy
The Wealth Effect
Business cycle
Corporation
42. That efficiency leads to economic prosperity for all.
The principle of efficiency
Boom
Expansionary policies
Participation rate
43. Concerned with analyzing whether or not a policy should be used.
Keynesian model
Four sectors of the economy
Quantity equation
Normative analysis
44. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Consumption function
Fisher effect
The real GDP per person
The Wealth Effect
45. 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.
Law of Demand
Anchored inflation expectations
Disinflation
Invisible hand
46. The international sector emphasizes the ________ rate.
Exchange
Law of Diminishing Marginal Utility
Substitution bias
Fractional
47. 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.
Intermediate Goods
NRU
Command economic system
Frictional unemployment
48. A macroeconomic policy that directly affects the structure and various institutions of an economy
Frictional unemployment
Structural policy
Congressional budget office
Gross National Product (GNP)
49. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Excess Supply
The quality adjustment bias
Standard of living
Indexing
50. Government policies intended to increase spending and output.
Stabilization policies
The principle of efficiency
Expansionary policies
Free market