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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. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
AD curve intersects the SAS curve
Output gap
Excess Supply
Labor productivity
2. A measure of overall price levels at a specific point in the price index.
Exchange
Nominal GDP
Price level
Marginal cost
3. The monetary sector focuses on the ________ rate.
Trough
Interest
Business cycle
Substitution bias
4. A large - unexpected change in the cost of resources.
Aggregate demand
Aggregate supply shock
Buyer's surplus
Total surplus
5. When inflation suddenly deviates from its normal course.
Cyclical unemployment
Nominal GDP
Inflation shock
Indexing
6. The speed that money changes hands in order to buy and sell final goods and services.
Autonomous Expenditure
Velocity
Capitalism
Inflationary gap
7. 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.
Indexing
The Wealth Effect
Command economic system
Potential output
8. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service
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9. The rate of price increase on all things except food and energy
Structural policy
Core rate of inflation
Business cycle
Aggregate demand
10. The relationship between disposable income and spending on consumable goods and services
Economic efficiency
Fractional
The principle of efficiency
Consumption function
11. Most free-market banking systems are based on __________ reserves.
Automatic stabilizers
Fractional
Boom
Credibility of monetary policy
12. The government office that is responsible for projecting federal surpluses and deficits
Intangible Assets
Potential output
Congressional budget office
Output gap
13. When the people believe that the nation's central bank will keep inflation rates low.
Consumer Nondurables
Menu cost
Credibility of monetary policy
Short run equilibrium output
14. The degree to which people have access to goods and services that make their lives better.
Standard of living
Sole proprietorship
Structural unemployment
Aggregate supply shock
15. When people's expectations of future inflation do not change even though inflation rates change.
Gross Domestic Product (GDP)
Anchored inflation expectations
Total surplus
Sole proprietorship
16. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus
Total surplus
Law of Demand
Law of Diminishing Marginal Utility
Mixed market
17. Used to demonstrate shifts in income distribution among a population over time.
Boom
Law of Demand
Lorenz curve
Keynesian economic theory
18. The portion of planned aggregate expenditure that is not based on output
Autonomous Expenditure
Substitution effect
Intangible Assets
Inflation inertia
19. The increase in total benefit that comes from producing one additional unit.
Contractionary policies
Pay
Marginal benefit
Structural unemployment
20. Legal entity that has received a charter from a state or federal government.
Corporation
Phillips curve
Recession
Inside lag
21. An increase in this would cause an increase in the aggregate supply
Traditional economic system
Price level
Labor productivity
Macroeconomics
22. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.
Aggregate supply shock
Fisher effect
Aggregate Supply
Marginal benefit
23. Represents the governmental tax rate that will best maximize tax revenues.
Peak
Laffer curve
NRU
Planned aggregate expenditure (PAE)
24. Goods not counted in the nation's GDP.
Fractional
Intermediate Goods
Four sectors of the economy
Aggregate supply
25. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Automatic stabilizers
Labor unions
Phillips curve
Inflation inertia
26. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.
Monopsony
Keynesian model
Socially optimal quantity
Invisible hand
27. The movement of workers between jobs - companies - and industries
Real quantity
Policy reaction function
Laffer curve
Worker mobility
28. The time between the need for a macroeconomic policy and its implementation
Reservation price
Inside lag
The principle of efficiency
Okun's Law
29. Business entity which legally has no separate existence from its owner.
Total surplus
Cyclical unemployment
The Wealth Effect
Sole proprietorship
30. On a demand curve - the _____ of the item is placed on the vertical axis of the graph.
Outside lag
Price
Core rate of inflation
The real GDP per person
31. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Capital income
Real employment
Price
Seller's reservation price
32. 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
Output gap
Disinflation
Free market
33. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made
Sunk cost
Congressional budget office
Macroeconomics
Consumption function
34. A result of there only being one buyer of a resource input - good - or service.
Asset
Short run equilibrium output
Intermediate goods
Monopsony
35. There is an ___________ ___ when aggregate output is above potential output
Seller's surplus
Relative price
Inflationary gap
Business cycle
36. 1 percent more unemployment results in 2 percent less output.
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37. The goods and services sector focuses largely on the level of ______ .
Income
Automatic stabilizers
Nominal GDP
Planned aggregate expenditure (PAE)
38. The slow change in inflation from year to year in industrialized nations
Inside lag
Monopsony
The rate of inflation
Inflation inertia
39. The annual percentage rate of change in price level reflected by price indexes
The real GDP per person
The rate of inflation
Deflation
Monetarism
40. The economic theory that states the main cause of change in aggregate output and price level is the result of monetary supply and the interest rate that comes from the amount of monetary supply
Monetarism
Disinflation
Buyer's surplus
Normative analysis
41. Natural Rate of Unemployment - a rate that will always exist
NRU
Marginal cost
Aggregate supply shock
Gross National Product (GNP)
42. The rise in taxes that occurs when before-tax income increases by one dollar
Marginal tax rate
Keynesian economic theory
Consumer Nondurables
Corporation
43. 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
AD curve intersects the SAS curve
Real GDP
Adam Smith
Rationing
44. Government policies aimed at stabilizing the economy by eliminating output gaps
AD curve intersects the SAS curve
Stabilization policies
Aggregation
Substitution bias
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.
Consumer Nondurables
Keynesian model
Buyer's surplus
Equilibrium price
46. A free market system that relies on private property ownership and supply and demand
Structural policy
Labor unions
Capitalism
Consumption
47. The real cost of changing a listed price.
Equilibrium price
Consumer Nondurables
Menu cost
Market equilibrium
48. Used in the production of final goods - but instead of being consumed - are available for reuse.
Capital goods
The real GDP per person
Consumption function
Law of Diminishing Marginal Utility
49. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply
Pay
Excess Supply
AD curve intersects the SAS curve
Structural unemployment
50. The increase in total cost that comes from producing one additional unit of a specific good or service.
Marginal cost
Command economic system
Inflation shock
Capital income