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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. Extreme economic growth






3. When the rate of inflation is extremely high.






4. 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.






5. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






6. Used to demonstrate shifts in income distribution among a population over time.






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






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






9. Natural Rate of Unemployment - a rate that will always exist






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






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






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






13. 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.






14. 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.






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






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






17. The real cost of changing a listed price.






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






19. The monetary sector focuses on the ________ rate.






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






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






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






23. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






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






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






26. 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).






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






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






29. 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






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






31. Describes how the economy directly effects the actions policymakers take.






32. 1 percent more unemployment results in 2 percent less output.


33. Money multiplied by velocity equals nominal GDP.






34. 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






35. When the people believe that the nation's central bank will keep inflation rates low.






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






37. Combines pure market and command. Example: Japan






38. The output per employed worker






39. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






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






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






42. When an economic unit makes more than it spends






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






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


45. Payments that the government makes to unemployed workers.






46. The speed that money changes hands in order to buy and sell final goods and services.






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






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






49. Business entity which legally has no separate existence from its owner.






50. The movement of workers between jobs - companies - and industries