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Test your basic knowledge |
CLEP Macroeconomics - 3
Start Test
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. The total value of goods and services produced in a country valued at current prices.
Market equilibrium
decreases increases
Nominal GDP
Structural unemployment
2. Patents - Goodwill - and Trademarks (lack physical substance)
Corporation
Policy reaction function
Intangible Assets
Stabilization policies
3. Extreme economic growth
Boom
Fisher effect
Inflation shock
Intermediate Goods
4. 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.
Business cycle
Aggregate Supply
Automatic stabilizers
Labor productivity
5. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Supply-side policy
Mixed market
Outside lag
6. Concerned with analyzing whether or not a policy should be used.
Normative analysis
Structural policy
Income
Anchored inflation expectations
7. The increase in total benefit that comes from producing one additional unit.
Consumer Nondurables
Marginal benefit
AD curve intersects the SAS curve
Law of Supply
8. Total tax paid divided by total (taxable) income - as a percentage.
The quality adjustment bias
Anchored inflation expectations
Structural policy
Average tax rate
9. The output per employed worker
Aggregate Supply
Structural policy
decreases increases
Labor productivity
10. Maximum price that a customer is willing to pay for a good
Worker mobility
Inflation inertia
Labor productivity
Reservation price
11. Goods that are used in the production of final goods.
Intermediate goods
Fisher effect
Pay
Normative analysis
12. 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.
Law of Demand
Aggregate demand
Planned aggregate expenditure (PAE)
Contractionary policies
13. 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).
Marginal tax rate
Frictional unemployment
Participation rate
Potential output
14. A policy that affects potential output
Supply-side policy
Short run equilibrium output
Free market
Price
15. An increase in this would cause an increase in the aggregate supply
Labor productivity
Real employment
Law of Supply
Credibility of monetary policy
16. That efficiency leads to economic prosperity for all.
Trough
The principle of efficiency
Seller's surplus
Inflation shock
17. Payments that the government makes to unemployed workers.
Gross National Product (GNP)
Monopsony
Sole proprietorship
Unemployment insurance
18. A quantity that is measured in real terms - the actual quantity of a good or service
Disinflation
Socially optimal quantity
Market equilibrium
Real quantity
19. The percentage of working-age people within the labor force
Marginal cost
Liquidity
Menu cost
Participation rate
20. When both producers and consumers are satisfied with their quantities at market price.
Interest
Frictional unemployment
Intangible Assets
Market equilibrium
21. The amount of workers that are willing to work for a real wage.
Cyclical unemployment
Socially optimal quantity
Labor supply
Pay
22. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Substitution bias
Four sectors of the economy
Inflation
Rationing
23. 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
Monetarism
Output gap
Law of Supply
Marginal tax rate
24. The beginning of a recession
Pay
Peak
Total surplus
Autonomous Expenditure
25. The government office that is responsible for projecting federal surpluses and deficits
Inside lag
Unemployment insurance
Congressional budget office
Price
26. The time between the need for a macroeconomic policy and its implementation
Potential output
Inside lag
Adam Smith
Capital income
27. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Aggregate Supply
Core rate of inflation
Total surplus
Planned aggregate expenditure (PAE)
28. When inflation suddenly deviates from its normal course.
Consumption
Inflation shock
Laffer curve
Outside lag
29. When the rate of inflation is extremely high.
Hyperinflation
Fisher effect
Buyer's surplus
Exchange
30. The difference between the price received by the seller and the seller's reservation price
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31. The slow change in inflation from year to year in industrialized nations
Mixed market
Outside lag
Inflation inertia
Aggregate demand
32. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Liquidity
Output gap
Supply-side policy
Inflationary gap
33. 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.
Gross Domestic Product (GDP)
Normative analysis
The rate of inflation
Short run equilibrium output
34. A macroeconomic policy that directly affects the structure and various institutions of an economy
Keynesian economic theory
Equilibrium price
Macroeconomics
Structural policy
35. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
Interest
Disinflation
Unemployment insurance
Aggregate Supply
36. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Fractional
Recession
Sunk cost
Fisher effect
37. The annual percentage rate of change in price level reflected by price indexes
Command economic system
Capitalism
Marginal benefit
The rate of inflation
38. 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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39. The monetary sector focuses on the ________ rate.
Participation rate
Interest
Congressional budget office
Mixed market
40. The ease with which an asset can be converted to currency.
Capital goods
Aggregate demand
Liquidity
Relative price
41. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Monetarism
Liquidity
Free market
Consumption
42. 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.
Consumption
Inflationary gap
Law of Diminishing Marginal Utility
Equilibrium price
43. The level of output where output equals planned aggregate expenditure
NRU
Short run equilibrium output
Seller's surplus
Gross National Product (GNP)
44. An increase in spending due to a perceived increase in wealth.
The Wealth Effect
Potential output
Short run equilibrium output
Labor supply
45. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Substitution bias
Capital goods
Fisher effect
Aggregate Supply
46. The rise in taxes that occurs when before-tax income increases by one dollar
decreases increases
Four sectors of the economy
Invisible hand
Marginal tax rate
47. The relationship between disposable income and spending on consumable goods and services
Income
Indexing
Aggregate supply shock
Consumption function
48. Goods and services sector - Labor sector - monetary sector - international sector.
Businesses
Credibility of monetary policy
Law of Demand
Four sectors of the economy
49. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Reservation price
The quality adjustment bias
Standard of living
Frictional unemployment
50. The continuing increase in the average level of prices of goods and services over time.
Inflation
Gross National Product (GNP)
Sole proprietorship
Intermediate Goods