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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. Government policies intended to increase spending and output.






2. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






3. Goods not counted in the nation's GDP.






4. The output per employed worker






5. When inflation suddenly deviates from its normal course.






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






7. Payments that the government makes to unemployed workers.






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






9. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






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.






13. Organizations that act as moderators between employers and employees






14. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.






15. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






16. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.






17. Government policies aimed at stabilizing the economy by eliminating output gaps






18. Used in the production of final goods - but instead of being consumed - are available for reuse.






19. The level of output where output equals planned aggregate expenditure






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.






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






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.






24. Money multiplied by velocity equals nominal GDP.






25. The goods and services sector focuses largely on the level of ______ .






26. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






27. Maximum price that a customer is willing to pay for a good






28. The total planned spending on final goods and services.






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






30. Goods that are used in the production of final goods.






31. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






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






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.






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






35. A free market system that relies on private property ownership and supply and demand






36. The adding up of individual economic variables to obtain a large - general picture of the economy.






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






38. Unicorporated entity that has shared ownership.






39. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






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.






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






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






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






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.






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






46. Caused by changes in the overall economy.






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.






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






49. A record of economic increases and decreases over time.






50. The real cost of changing a listed price.