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






2. The beginning of a recession






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






4. Government policies intended to increase spending and output.






5. The government office that is responsible for projecting federal surpluses and deficits






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






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






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






9. The monetary sector focuses on the ________ rate.






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






11. (n) something of value; a resource; an advantage






12. Unicorporated entity that has shared ownership.






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






15. Payments that the government makes to unemployed workers.






16. 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.






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






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






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






20. 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






21. The law that states that as the price of any good or service increases - the quantity of that good or service will increase and vice versa.






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






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






24. Total tax paid divided by total (taxable) income - as a percentage.






25. The rise in taxes that occurs when before-tax income increases by one dollar






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






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






28. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






29. 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.






30. 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).






31. When prices fall consistently over time - leading to negative inflation.






32. Government policies intended to avoid inflation and other effects due to increased expansion. Includes: Action such as decreasing government spending - increasing taxes - and decreasing the supply of money - and raising interest rates.






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






34. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).






35. 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.






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






37. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






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






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






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






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






42. Goods not counted in the nation's GDP.






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






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






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






46. Total supply of goods and services in an economy






47. When people's expectations of future inflation do not change even though inflation rates change.






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






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






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