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






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






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






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






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






6. Government policies intended to increase spending and output.






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






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






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






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






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






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






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






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






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






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






17. Organizations that act as moderators between employers and employees






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






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






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






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






22. The percentage of working-age people within the labor force






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






24. The output per employed worker






25. Payments that the government makes to unemployed workers.






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






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






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






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.






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






31. Caused by changes in the overall economy.






32. A free market system that relies on private property ownership and supply and demand






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






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






36. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






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






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






39. When the rate of inflation is extremely high.






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






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






42. A policy that affects potential output






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






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






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.






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






47. The beginning of a recession






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






49. A large - unexpected change in the cost of resources.






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