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






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






3. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






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






5. 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.






6. The lowest point of the recession






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






8. 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).






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






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






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






12. 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.






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






14. When an economic unit makes more than it spends






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






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






17. Organizations that act as moderators between employers and employees






18. The output per employed worker






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






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






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






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

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






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






25. Extreme economic growth






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






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






28. 1 percent more unemployment results in 2 percent less output.

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29. The labor sector highlights the rate of ____ .






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






31. 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.






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






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






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






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 quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






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






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






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






40. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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






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






47. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service

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48. 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.






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






50. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.