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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. An increase in this would cause an increase in the aggregate supply






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

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






4. When the people believe that the nation's central bank will keep inflation rates low.






5. Most free-market banking systems are based on __________ reserves.






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






7. The real cost of changing a listed price.






8. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






9. Government policies intended to increase spending and output.






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






11. 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).






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






13. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






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






15. The output per employed worker






16. 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.






17. That efficiency leads to economic prosperity for all.






18. When both producers and consumers are satisfied with their quantities at market price.






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






20. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






21. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.






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






23. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






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






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






26. 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.






27. The degree to which people have access to goods and services that make their lives better.






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






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






30. Organizations that act as moderators between employers and employees






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






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

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33. 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






34. Payments that the government makes to unemployed workers.






35. The increase in total benefit that comes from producing one additional unit.






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






37. Total supply of goods and services in an economy






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






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






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






41. Natural Rate of Unemployment - a rate that will always exist






42. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






43. Caused by changes in the overall economy.






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






45. (n) something of value; a resource; an advantage






46. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






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






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






49. The beginning of a recession






50. 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