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






2. 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.






3. Concerned with analyzing whether or not a policy should be used.






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






5. 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






6. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available






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






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






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






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

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






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






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






14. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






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






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






17. 1 percent more unemployment results in 2 percent less output.

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






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






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






21. When inflation suddenly deviates from its normal course.






22. 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.






23. Total supply of goods and services in an economy






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






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






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






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






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






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






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






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






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






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






35. The maximum amount that an economy can output over a period of time






36. The labor sector highlights the rate of ____ .






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






38. Legal entity that has received a charter from a state or federal government.






39. The real cost of changing a listed price.






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






41. That efficiency leads to economic prosperity for all.






42. 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.






43. 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






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






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






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






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






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






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






50. The lowest point of the recession