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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. 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.






2. The international sector emphasizes the ________ rate.






3. Payments that the government makes to unemployed workers.






4. Combines pure market and command. Example: Japan






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






6. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






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






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






9. The ease with which an asset can be converted to currency.






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






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






12. 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.






13. Extreme economic growth






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






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






16. Government policies intended to increase spending and output.






17. 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).






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






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






20. When the rate of inflation is extremely high.






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






22. Money multiplied by velocity equals nominal GDP.






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






24. That efficiency leads to economic prosperity for all.






25. 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






26. Caused by changes in the overall economy.






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






28. Total supply of goods and services in an economy






29. The monetary sector focuses on the ________ rate.






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






31. 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.






32. The relationship between disposable income and spending on consumable goods and services






33. When an economic unit makes more than it spends






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






35. A quantity that is measured in real terms - the actual quantity of a good or service






36. Goods and services sector - Labor sector - monetary sector - international sector.






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






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






39. The rate of price increase on all things except food and energy






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






41. Describes how the economy directly effects the actions policymakers take.






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






43. 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






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






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






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






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






48. Short-run macroeconomic equilibrium occurs at the level of GDP where the:






49. The time period between a policy's implementation and its desired effects on an economy.






50. When prices fall consistently over time - leading to negative inflation.