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Test your basic knowledge |
CLEP Macroeconomics - 3
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Study First
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 to demonstrate shifts in income distribution among a population over time.
Aggregation
Average tax rate
The rate of inflation
Lorenz curve
2. Patents - Goodwill - and Trademarks (lack physical substance)
Socially optimal quantity
Intangible Assets
Supply-side policy
Price level
3. A quantity that is measured in real terms - the actual quantity of a good or service
AD curve intersects the SAS curve
Inflation inertia
Real quantity
Trough
4. The slow change in inflation from year to year in industrialized nations
Potential output
Pay
Inflation inertia
Unemployment insurance
5. Caused by changes in the overall economy.
Cyclical unemployment
Sole proprietorship
Substitution bias
Invisible hand
6. Used in the production of final goods - but instead of being consumed - are available for reuse.
Labor productivity
Capital goods
Seller's surplus
Structural policy
7. Most free-market banking systems are based on __________ reserves.
LRAS
Fractional
Expansionary policies
Cyclical unemployment
8. An increase in spending due to a perceived increase in wealth.
Participation rate
Unemployment insurance
The Wealth Effect
Relative price
9. 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
Price level
Monetarism
Keynesian model
Complement
10. Total tax paid divided by total (taxable) income - as a percentage.
Real GDP
Capital income
Average tax rate
Aggregate supply
11. Unicorporated entity that has shared ownership.
Consumer Nondurables
Partnership
Saving
The real GDP per person
12. The adding up of individual economic variables to obtain a large - general picture of the economy.
Seller's reservation price
Nominal GDP
Aggregation
decreases increases
13. 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
Pay
Quantity equation
Monopsony
Substitution bias
14. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Free market
Intermediate goods
Core rate of inflation
Laffer curve
15. Total supply of goods and services in an economy
Relative price
The rate of inflation
Aggregate supply
Business cycle
16. Represents the governmental tax rate that will best maximize tax revenues.
Okun's Law
Inflationary gap
Laffer curve
Outside lag
17. 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).
Liquidity
Buyer's surplus
Aggregate Supply
Frictional unemployment
18. Government policies intended to increase spending and output.
Automatic stabilizers
Partnership
Expansionary policies
Boom
19. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Inflation shock
LRAS
Peak
Participation rate
20. When the people believe that the nation's central bank will keep inflation rates low.
Average tax rate
Fisher effect
Credibility of monetary policy
Asset
21. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.
Intangible Assets
Structural policy
Substitution effect
Price
22. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Aggregate Supply
Labor productivity
Price level
Worker mobility
23. When prices fall consistently over time - leading to negative inflation.
Deflation
Liquidity
Economic efficiency
Command economic system
24. There is an ___________ ___ when aggregate output is above potential output
Core rate of inflation
Inflationary gap
Capital goods
Economic efficiency
25. Business entity which legally has no separate existence from its owner.
Consumption function
Sole proprietorship
Gross Domestic Product (GDP)
Law of Supply
26. Goods that are used in the production of final goods.
Monetarism
Seller's surplus
Intermediate goods
Policy reaction function
27. The percentage of working-age people within the labor force
Businesses
Participation rate
Seller's reservation price
Recession
28. 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.
Interest
Autonomous Expenditure
Law of Demand
Complement
29. The level of output where output equals planned aggregate expenditure
Short run equilibrium output
Rationing
Capital goods
Total surplus
30. When both producers and consumers are satisfied with their quantities at market price.
Monopsony
Velocity
Market equilibrium
The Wealth Effect
31. When the rate of inflation is extremely high.
Hyperinflation
Expansionary policies
Keynesian economic theory
Structural unemployment
32. The basic assumption of this model is that in the short run - firms meet demand at present price.
Relative price
Lorenz curve
Tangible Assets
Keynesian model
33. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Short run equilibrium output
Aggregate demand
Intangible Assets
Aggregate Supply
34. Real Estate - Equipment - and Cash (physical assets)
Capital goods
Law of Supply
Velocity
Tangible Assets
35. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
Real GDP
Capitalism
decreases increases
36. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Total surplus
Labor productivity
Output gap
Gross Domestic Product (GDP)
37. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Policy reaction function
Congressional budget office
Gross National Product (GNP)
Recession
38. A macroeconomic policy that directly affects the structure and various institutions of an economy
Seller's surplus
Law of Diminishing Marginal Utility
Real GDP
Structural policy
39. A measure of overall price levels at a specific point in the price index.
Worker mobility
Policy reaction function
Price level
Aggregate Supply
40. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
LRAS
Short run equilibrium output
Output gap
Excess Supply
41. Organizations that act as moderators between employers and employees
Saving
Labor unions
Gross Domestic Product (GDP)
The Wealth Effect
42. Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year - the index expressed as a decimal
Boom
Real GDP
Stabilization policies
Laffer curve
43. The time period between a policy's implementation and its desired effects on an economy.
Marginal tax rate
Outside lag
Fisher effect
Rationing
44. The time between the need for a macroeconomic policy and its implementation
Inside lag
Corporation
Structural policy
Boom
45. The labor sector highlights the rate of ____ .
Four sectors of the economy
Excess Supply
Marginal tax rate
Pay
46. The goods and services sector focuses largely on the level of ______ .
Fractional
Income
Core rate of inflation
Seller's surplus
47. Maximum price that a customer is willing to pay for a good
Consumption function
Reservation price
Capital goods
Business cycle
48. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Capitalism
Phillips curve
Consumer Nondurables
The rate of inflation
49. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Gross National Product (GNP)
Disinflation
Substitution effect
Labor unions
50. The ease with which an asset can be converted to currency.
Structural policy
Worker mobility
Capitalism
Liquidity