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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. 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






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






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






4. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






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






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






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






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






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






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






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






13. The rise in taxes that occurs when before-tax income increases by one dollar






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






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






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






17. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost


18. When the rate of inflation is extremely high.






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






20. The annual percentage rate of change in price level reflected by price indexes






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






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






23. The international sector emphasizes the ________ rate.






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






25. Programs and economic policies such as income taxes - unemployment insurance and TANF (Temporary Aid to Needy Families) that are automatically in place - help to decrease fluctuations in the GDP.






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






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






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


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






30. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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






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






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






38. Payments that the government makes to unemployed workers.






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






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






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






42. 1 percent more unemployment results in 2 percent less output.


43. Government policies intended to increase spending and output.






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






45. The labor sector highlights the rate of ____ .






46. Organizations that act as moderators between employers and employees






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






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






49. Total supply of goods and services in an economy






50. 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.