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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. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






2. The amount of workers that are willing to work for a real wage.






3. When people's expectations of future inflation do not change even though inflation rates change.






4. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






5. Organizations that act as moderators between employers and employees






6. Caused by changes in the overall economy.






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).






8. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






9. The increase in total cost that comes from producing one additional unit of a specific good or service.






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






11. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






12. Used to demonstrate shifts in income distribution among a population over time.






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






14. 1 percent more unemployment results in 2 percent less output.

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15. Combines pure market and command. Example: Japan






16. There is an ___________ ___ when aggregate output is above potential output






17. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






18. Total tax paid divided by total (taxable) income - as a percentage.






19. A policy that affects potential output






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






21. Legal entity that has received a charter from a state or federal government.






22. A measure of overall price levels at a specific point in the price index.






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






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






25. 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.






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






27. A macroeconomic policy that directly affects the structure and various institutions of an economy






28. 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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29. Goods that are used in the production of final goods.






30. The slow change in inflation from year to year in industrialized nations






31. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






32. Payments that the government makes to unemployed workers.






33. The price of a good or service in relation to the price of other goods and services.






34. Total supply of goods and services in an economy






35. The monetary sector focuses on the ________ rate.






36. The lowest point of the recession






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






38. 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.






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






40. 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






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






42. The beginning of a recession






43. The continuing increase in the average level of prices of goods and services over time.






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






45. The difference between the price received by the seller and the seller's reservation price

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46. Goods like food and clothing that have a short lifespan.






47. Real Estate - Equipment - and Cash (physical assets)






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






49. 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






50. The movement of workers between jobs - companies - and industries