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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. Government policies intended to increase spending and output.
AD curve intersects the SAS curve
Expansionary policies
Labor productivity
Buyer's surplus
2. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Free market
Price
Income
Disinflation
3. Goods not counted in the nation's GDP.
Invisible hand
Intermediate Goods
Total surplus
Unemployment insurance
4. The output per employed worker
Interest
Unemployment insurance
Structural policy
Labor productivity
5. When inflation suddenly deviates from its normal course.
Inflation shock
Short run equilibrium output
Aggregate demand
Socially optimal quantity
6. A Scottish man (1723-1790) who is known as the father of modern economics.
Aggregation
Buyer's surplus
Lorenz curve
Adam Smith
7. Payments that the government makes to unemployed workers.
Unemployment insurance
Law of Supply
Hyperinflation
Real GDP
8. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Market equilibrium
Businesses
Substitution bias
Aggregate demand
9. The basic assumption of this model is that in the short run - firms meet demand at present price.
Interest
Keynesian model
Businesses
Indexing
10. The increase in total cost that comes from producing one additional unit of a specific good or service.
Worker mobility
Congressional budget office
Marginal cost
Gross Domestic Product (GDP)
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. Goods like food and clothing that have a short lifespan.
Cyclical unemployment
Marginal tax rate
Consumer Nondurables
Autonomous Expenditure
13. Organizations that act as moderators between employers and employees
Labor unions
Complement
Indexing
Velocity
14. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Fisher effect
Laffer curve
Keynesian model
15. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Congressional budget office
Peak
Aggregate demand
Consumption
16. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Boom
Monetarism
decreases increases
LRAS
17. Government policies aimed at stabilizing the economy by eliminating output gaps
Participation rate
Stabilization policies
Structural policy
Inflation inertia
18. Used in the production of final goods - but instead of being consumed - are available for reuse.
Peak
Capital goods
Rationing
Sunk cost
19. The level of output where output equals planned aggregate expenditure
Relative price
Recession
Expansionary policies
Short run equilibrium output
20. 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.
Okun's Law
Businesses
Traditional economic system
Capital income
21. Real Estate - Equipment - and Cash (physical assets)
Real quantity
Inflation inertia
Tangible Assets
Adam Smith
22. The difference between the price received by the seller and the seller's reservation price
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23. A measure of overall price levels at a specific point in the price index.
Buyer's surplus
Unemployment insurance
Deflation
Price level
24. Money multiplied by velocity equals nominal GDP.
Cyclical unemployment
Quantity equation
Equilibrium price
NRU
25. The goods and services sector focuses largely on the level of ______ .
Command economic system
Labor unions
Income
Planned aggregate expenditure (PAE)
26. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Anchored inflation expectations
Reservation price
Businesses
Fractional
27. Maximum price that a customer is willing to pay for a good
Fractional
Menu cost
Reservation price
Policy reaction function
28. The total planned spending on final goods and services.
Sunk cost
Planned aggregate expenditure (PAE)
Monetarism
Menu cost
29. The time between the need for a macroeconomic policy and its implementation
Aggregate supply shock
Pay
Boom
Inside lag
30. Goods that are used in the production of final goods.
Law of Supply
Businesses
Intermediate goods
Fisher effect
31. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Tangible Assets
Gross National Product (GNP)
Deflation
Excess Supply
32. There is an ___________ ___ when aggregate output is above potential output
Sole proprietorship
Invisible hand
LRAS
Inflationary gap
33. 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)
Recession
Invisible hand
Rationing
34. A macroeconomic policy that directly affects the structure and various institutions of an economy
Credibility of monetary policy
Structural policy
Socially optimal quantity
Expansionary policies
35. A free market system that relies on private property ownership and supply and demand
Mixed market
Capitalism
Total surplus
Lorenz curve
36. The adding up of individual economic variables to obtain a large - general picture of the economy.
Intermediate Goods
Aggregation
Fisher effect
Inflation shock
37. The speed that money changes hands in order to buy and sell final goods and services.
Equilibrium price
Quantity equation
Velocity
Sunk cost
38. Unicorporated entity that has shared ownership.
Tangible Assets
Inflationary gap
Standard of living
Partnership
39. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Worker mobility
Indexing
Hyperinflation
Real employment
40. 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.
Unemployment insurance
Command economic system
Capital income
Structural policy
41. Total tax paid divided by total (taxable) income - as a percentage.
Marginal cost
Business cycle
Fractional
Average tax rate
42. 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
Aggregate demand
Law of Diminishing Marginal Utility
Monetarism
Invisible hand
43. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Normative analysis
Intermediate Goods
Keynesian economic theory
Outside lag
44. 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.
Buyer's surplus
Business cycle
Equilibrium price
Complement
45. 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
Menu cost
Invisible hand
Real quantity
Substitution bias
46. Caused by changes in the overall economy.
Cyclical unemployment
Seller's surplus
Corporation
Intermediate Goods
47. 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.
Reservation price
Law of Supply
Real GDP
Inside lag
48. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Normative analysis
Phillips curve
Automatic stabilizers
Law of Diminishing Marginal Utility
49. A record of economic increases and decreases over time.
Saving
Real GDP
Business cycle
Outside lag
50. The real cost of changing a listed price.
Menu cost
decreases increases
Planned aggregate expenditure (PAE)
Intermediate Goods