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






2. Patents - Goodwill - and Trademarks (lack physical substance)






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






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






5. Caused by changes in the overall economy.






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






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






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






9. 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






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






11. Unicorporated entity that has shared ownership.






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






13. 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






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






15. Total supply of goods and services in an economy






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






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. Government policies intended to increase spending and output.






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






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






21. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






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






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






25. Business entity which legally has no separate existence from its owner.






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






27. The percentage of working-age people within the labor force






28. 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.






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






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






31. When the rate of inflation is extremely high.






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






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






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






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






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






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






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






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






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






41. Organizations that act as moderators between employers and employees






42. 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






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






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






45. The labor sector highlights the rate of ____ .






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






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






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






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






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