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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. When inflation suddenly deviates from its normal course.






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






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






4. 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.






5. 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.






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






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






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






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






10. The goods and services sector focuses largely on the level of ______ .






11. A result of there only being one buyer of a resource input - good - or service.






12. An economic system in which all factors of production are owned and controlled by the government. Often referred to as a centrally planned economic system. Example: Former Soviet Union.






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






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






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






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






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






18. When an economic unit makes more than it spends






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






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






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






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






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






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






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






26. Unicorporated entity that has shared ownership.






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

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






29. The percentage of working-age people within the labor force






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






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






32. The beginning of a recession






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






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






35. A policy that affects potential output






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






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






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






39. 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.






40. The ease with which an asset can be converted to currency.






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






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






43. Combines pure market and command. Example: Japan






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






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






46. The basic assumption of this model is that in the short run - firms meet demand at present price.






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






49. 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.






50. Organizations that act as moderators between employers and employees