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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 amount of workers that are willing to work for a real wage.
Labor supply
Stabilization policies
Partnership
Fractional
2. The beginning of a recession
Inflation
Peak
Substitution bias
Price
3. Used to demonstrate shifts in income distribution among a population over time.
Lorenz curve
Relative price
Labor unions
Intermediate goods
4. Government policies intended to increase spending and output.
Laffer curve
Gross Domestic Product (GDP)
Expansionary policies
Structural unemployment
5. The government office that is responsible for projecting federal surpluses and deficits
Congressional budget office
Inside lag
Contractionary policies
Real quantity
6. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Excess Supply
Price
Partnership
Law of Diminishing Marginal Utility
7. Concerned with analyzing whether or not a policy should be used.
Income
Labor productivity
Real quantity
Normative analysis
8. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
Sole proprietorship
Disinflation
Expansionary policies
AD curve intersects the SAS curve
9. The monetary sector focuses on the ________ rate.
Interest
Standard of living
Okun's Law
Labor supply
10. Most free-market banking systems are based on __________ reserves.
Fractional
Aggregation
Phillips curve
Businesses
11. (n) something of value; a resource; an advantage
Asset
Aggregate Supply
Interest
Structural unemployment
12. Unicorporated entity that has shared ownership.
Partnership
Inflation shock
Real employment
Inflationary gap
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.
Real employment
Adam Smith
Equilibrium price
Market equilibrium
14. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Businesses
Automatic stabilizers
The real GDP per person
decreases increases
15. Payments that the government makes to unemployed workers.
Lorenz curve
Unemployment insurance
Law of Diminishing Marginal Utility
Boom
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.
Contractionary policies
Traditional economic system
Exchange
Potential output
17. Business entity which legally has no separate existence from its owner.
Sole proprietorship
Expansionary policies
Intermediate goods
Sunk cost
18. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Real quantity
Aggregate supply
Market equilibrium
Consumption
19. The speed that money changes hands in order to buy and sell final goods and services.
Velocity
Output gap
Policy reaction function
Keynesian economic theory
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
Intermediate goods
Adam Smith
Capitalism
Real GDP
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.
Socially optimal quantity
Core rate of inflation
Phillips curve
Law of Supply
22. The degree to which people have access to goods and services that make their lives better.
Standard of living
Phillips curve
Inflationary gap
Credibility of monetary policy
23. The rate of price increase on all things except food and energy
Core rate of inflation
Lorenz curve
LRAS
Congressional budget office
24. Total tax paid divided by total (taxable) income - as a percentage.
Average tax rate
Capitalism
Keynesian economic theory
Core rate of inflation
25. The rise in taxes that occurs when before-tax income increases by one dollar
Capital income
Reservation price
Adam Smith
Marginal tax rate
26. The basic assumption of this model is that in the short run - firms meet demand at present price.
The rate of inflation
Law of Diminishing Marginal Utility
Keynesian model
Capital goods
27. The maximum amount that an economy can output over a period of time
Structural unemployment
Real quantity
Potential output
Expansionary policies
28. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.
Socially optimal quantity
Monetarism
The rate of inflation
Businesses
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.
Automatic stabilizers
Complement
Inside lag
Marginal cost
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).
Businesses
The real GDP per person
Frictional unemployment
Law of Supply
31. When prices fall consistently over time - leading to negative inflation.
NRU
Seller's surplus
Deflation
Hyperinflation
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.
Keynesian economic theory
Policy reaction function
Contractionary policies
Law of Diminishing Marginal Utility
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 .
Substitution bias
LRAS
Structural policy
Fractional
34. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Phillips curve
decreases increases
Inside lag
Real GDP
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.
Gross National Product (GNP)
Capital goods
Law of Demand
Intermediate goods
36. The annual percentage rate of change in price level reflected by price indexes
Short run equilibrium output
The rate of inflation
Lorenz curve
The Wealth Effect
37. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Phillips curve
Aggregate demand
Interest
Command economic system
38. The total planned spending on final goods and services.
Planned aggregate expenditure (PAE)
Monopsony
Price level
Business cycle
39. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Standard of living
The real GDP per person
Real employment
Gross Domestic Product (GDP)
40. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Expansionary policies
Free market
Stabilization policies
Normative analysis
41. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Core rate of inflation
Hyperinflation
Aggregate Supply
Structural unemployment
42. Goods not counted in the nation's GDP.
Intermediate Goods
Lorenz curve
The quality adjustment bias
LRAS
43. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.
The rate of inflation
Disinflation
Autonomous Expenditure
Fisher effect
44. An increase in this would cause an increase in the aggregate supply
Labor productivity
Average tax rate
Price
decreases increases
45. The total value of goods and services produced in a country valued at current prices.
LRAS
Economic efficiency
Nominal GDP
Fisher effect
46. Total supply of goods and services in an economy
Laffer curve
Aggregate supply
Velocity
Consumption function
47. When people's expectations of future inflation do not change even though inflation rates change.
Socially optimal quantity
Anchored inflation expectations
Hyperinflation
Fisher effect
48. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Indexing
Standard of living
Quantity equation
Hyperinflation
49. Represents the governmental tax rate that will best maximize tax revenues.
Laffer curve
Relative price
Aggregate demand
Short run equilibrium output
50. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
Seller's reservation price
Buyer's surplus
Cyclical unemployment