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






2. The total value of goods and services produced in a country valued at current prices.






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






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






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






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






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






9. A policy that affects potential output






10. Unicorporated entity that has shared ownership.






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






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






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






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






15. That efficiency leads to economic prosperity for all.






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






17. Organizations that act as moderators between employers and employees






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






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






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






21. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






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






23. A large - unexpected change in the cost of resources.






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






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






26. The part of economics study that looks at the operation of a nation's economy as a whole






27. 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.






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






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






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






31. 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.






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






33. Can be found by multiplying the average labor productivity by the percentage of people that are working in 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. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






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






37. Total supply of goods and services in an economy






38. The portion of planned aggregate expenditure that is not based on output






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






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






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






42. The government office that is responsible for projecting federal surpluses and deficits






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






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






45. When the rate of inflation is extremely high.






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






47. The real cost of changing a listed price.






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






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






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