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Test your basic knowledge |
CLEP Macroeconomics - 3
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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. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Aggregation
Corporation
Phillips curve
Rationing
2. The time between the need for a macroeconomic policy and its implementation
Price level
Inside lag
The principle of efficiency
Law of Diminishing Marginal Utility
3. The adding up of individual economic variables to obtain a large - general picture of the economy.
Aggregation
Labor unions
Intermediate Goods
Menu cost
4. The movement of workers between jobs - companies - and industries
Gross Domestic Product (GDP)
Inflation shock
Worker mobility
Supply-side policy
5. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Law of Supply
Traditional economic system
Aggregate demand
Socially optimal quantity
6. Government policies intended to increase spending and output.
Lorenz curve
Real employment
Expansionary policies
Rationing
7. The value of all goods and services produced anywhere in the world by a nation's citizens during a specified amount of time.
Real quantity
Inside lag
Tangible Assets
Gross National Product (GNP)
8. The slow change in inflation from year to year in industrialized nations
Participation rate
Labor supply
Inflation inertia
Business cycle
9. The total value of goods and services produced in a country valued at current prices.
Nominal GDP
Indexing
Interest
Substitution effect
10. The degree to which people have access to goods and services that make their lives better.
Standard of living
Aggregate Supply
Nominal GDP
Real quantity
11. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Stabilization policies
Labor productivity
Tangible Assets
Output gap
12. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Structural policy
Price
Autonomous Expenditure
Reservation price
13. Goods and services sector - Labor sector - monetary sector - international sector.
Capital goods
Inside lag
Disinflation
Four sectors of the economy
14. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Average tax rate
Fractional
Phillips curve
15. Caused by changes in demand or technology. Long-term and continual unemployment that continues even though the economy is producing normally
Substitution bias
LRAS
Traditional economic system
Structural unemployment
16. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Trough
Real quantity
Free market
Worker mobility
17. Organizations that act as moderators between employers and employees
Labor unions
NRU
Congressional budget office
Labor supply
18. The portion of planned aggregate expenditure that is not based on output
AD curve intersects the SAS curve
Autonomous Expenditure
The quality adjustment bias
Economic efficiency
19. Distributing a good or resource among consumers that would like to have more of that good or resource than is made available
Rationing
Participation rate
Aggregate demand
Consumer Nondurables
20. An increase in this would cause an increase in the aggregate supply
Core rate of inflation
decreases increases
Labor productivity
Mixed market
21. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
Inflation
Reservation price
Marginal cost
22. The percentage of working-age people within the labor force
AD curve intersects the SAS curve
Monetarism
Participation rate
Seller's reservation price
23. When people's expectations of future inflation do not change even though inflation rates change.
Aggregate demand
Anchored inflation expectations
Price
Marginal cost
24. The output per employed worker
The Wealth Effect
Corporation
Labor productivity
Interest
25. Payments that the government makes to unemployed workers.
Saving
Unemployment insurance
Labor productivity
Labor unions
26. An increase in spending due to a perceived increase in wealth.
Substitution bias
Marginal benefit
The Wealth Effect
Consumption
27. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Lorenz curve
decreases increases
AD curve intersects the SAS curve
Anchored inflation expectations
28. When prices fall consistently over time - leading to negative inflation.
Businesses
The real GDP per person
Intermediate goods
Deflation
29. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.
Economic efficiency
Autonomous Expenditure
Inflation inertia
Sunk cost
30. A quantity that is measured in real terms - the actual quantity of a good or service
Free market
Autonomous Expenditure
Real quantity
Boom
31. Caused by changes in the overall economy.
Lorenz curve
Cyclical unemployment
Command economic system
Indexing
32. A free market system that relies on private property ownership and supply and demand
AD curve intersects the SAS curve
Interest
Congressional budget office
Capitalism
33. 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
Intangible Assets
Real GDP
Automatic stabilizers
Structural unemployment
34. 1 percent more unemployment results in 2 percent less output.
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35. There is an ___________ ___ when aggregate output is above potential output
Quantity equation
Hyperinflation
Law of Supply
Inflationary gap
36. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.
Labor productivity
Planned aggregate expenditure (PAE)
Fractional
Complement
37. A measure of overall price levels at a specific point in the price index.
Labor supply
Substitution effect
Price level
Worker mobility
38. The speed that money changes hands in order to buy and sell final goods and services.
Peak
Buyer's surplus
Average tax rate
Velocity
39. When the rate of inflation is extremely high.
Structural unemployment
Hyperinflation
Price
Liquidity
40. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
Law of Supply
Worker mobility
Intermediate Goods
Keynesian economic theory
41. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Structural unemployment
Capital income
Real quantity
Invisible hand
42. A policy that affects potential output
Capital income
Supply-side policy
The real GDP per person
Substitution effect
43. The maximum amount that an economy can output over a period of time
Aggregate demand
Frictional unemployment
Potential output
Consumption
44. The basic assumption of this model is that in the short run - firms meet demand at present price.
Free market
Phillips curve
Planned aggregate expenditure (PAE)
Keynesian model
45. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.
Congressional budget office
Equilibrium price
decreases increases
Labor unions
46. Goods that are used in the production of final goods.
Real GDP
Intermediate goods
Worker mobility
Anchored inflation expectations
47. The beginning of a recession
Peak
Structural policy
Substitution effect
Monetarism
48. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Gross National Product (GNP)
Keynesian economic theory
Worker mobility
Aggregate Supply
49. A large - unexpected change in the cost of resources.
Marginal cost
Aggregate supply shock
Potential output
Intangible Assets
50. The goods and services sector focuses largely on the level of ______ .
Automatic stabilizers
Boom
Income
Exchange