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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 government office that is responsible for projecting federal surpluses and deficits






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






3. The international sector emphasizes the ________ rate.






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






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






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






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






8. When an economic unit makes more than it spends






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






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






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






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






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






14. 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.






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






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






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






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






19. The monetary sector focuses on the ________ rate.






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






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






22. Organizations that act as moderators between employers and employees






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






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






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






26. A record of economic increases and decreases over time.






27. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.






28. The beginning of a recession






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






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






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






32. 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






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






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






36. Payments that the government makes to unemployed workers.






37. In a traditional economic system - the availability of resources is based on inheritance. Goods are only produced for consumption and surpluses do not occur. This type of economy is normally found in South American - Asian - and African countries.






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






39. 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.






40. The lowest point of the recession






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






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






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






44. The degree to which people have access to goods and services that make their lives better.






45. Caused by changes in the overall economy.






46. 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






47. Total supply of goods and services in an economy






48. 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.






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






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