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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 quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






2. Caused by changes in the overall economy.






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






4. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






5. Government policies intended to increase spending and output.






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






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






8. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.






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






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






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






12. The output per employed worker






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






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






15. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






16. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally






17. A record of economic increases and decreases over time.






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






19. The beginning of a recession






20. The labor sector highlights the rate of ____ .






21. A policy that affects potential output






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






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






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






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






26. The monetary sector focuses on the ________ rate.






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






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






29. 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.






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






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






32. 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.






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






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






35. 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.






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






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






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






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






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






41. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.






42. 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






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






44. Total supply of goods and services in an economy






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






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






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






48. 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






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






50. The real cost of changing a listed price.