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






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






3. When the rate of inflation is extremely high.






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






5. A free market system that relies on private property ownership and supply and demand






6. The lowest point of the recession






7. The beginning of a recession






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






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






10. The rate of price increase on all things except food and energy






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






12. 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.






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






14. 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






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






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






17. Caused by changes in the overall economy.






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






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






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






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






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






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






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






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






26. 1 percent more unemployment results in 2 percent less output.

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27. Legal entity that has received a charter from a state or federal government.






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






29. A policy that affects potential output






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






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






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






34. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)






35. The continuing increase in the average level of prices of goods and services over time.






36. 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.






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






38. Government policies intended to increase spending and output.






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






40. The increase in total cost that comes from producing one additional unit of a specific good or service.






41. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






42. The international sector emphasizes the ________ rate.






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






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






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






46. 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






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






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






49. Payments that the government makes to unemployed workers.






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

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