SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.
Keynesian economic theory
Velocity
Structural policy
The quality adjustment bias
2. The real cost of changing a listed price.
The rate of inflation
Hyperinflation
Menu cost
decreases increases
3. The rise in taxes that occurs when before-tax income increases by one dollar
Quantity equation
Marginal cost
Deflation
Marginal tax rate
4. A GDP decline that lasts two-quarters (six months). A period of slow economic growth
Inflation inertia
Recession
Partnership
Worker mobility
5. The level of output where output equals planned aggregate expenditure
Worker mobility
Short run equilibrium output
Relative price
Intermediate Goods
6. When inflation suddenly deviates from its normal course.
Potential output
Inflation shock
Keynesian economic theory
Keynesian model
7. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation
Congressional budget office
Labor productivity
Four sectors of the economy
Indexing
8. The slow change in inflation from year to year in industrialized nations
Inflation inertia
Congressional budget office
Excess Supply
Expansionary policies
9. Used to demonstrate shifts in income distribution among a population over time.
Deflation
Monopsony
Lorenz curve
Economic efficiency
10. The portion of planned aggregate expenditure that is not based on output
NRU
The Wealth Effect
Autonomous Expenditure
Buyer's surplus
11. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.
AD curve intersects the SAS curve
Inflation inertia
The principle of efficiency
Keynesian economic theory
12. Goods that are used in the production of final goods.
Intermediate goods
Credibility of monetary policy
Real quantity
Aggregate demand
13. The goods and services sector focuses largely on the level of ______ .
The rate of inflation
Gross Domestic Product (GDP)
Income
Monopsony
14. Real Estate - Equipment - and Cash (physical assets)
Velocity
Output gap
Tangible Assets
Pay
15. Demonstrates that there is an inverse relationship between inflation and unemployment; as inflation increases - unemployment decreases (and vice versa).
Market equilibrium
Phillips curve
Recession
Menu cost
16. 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
Expansionary policies
Structural policy
Seller's reservation price
17. A difference between the potential output (potential GDP) of an economy and its actual output (actual GDP)
Aggregate supply shock
Output gap
Anchored inflation expectations
Aggregate supply
18. The continuing increase in the average level of prices of goods and services over time.
Inflation
Market equilibrium
Consumption function
Deflation
19. Goods and services sector - Labor sector - monetary sector - international sector.
Labor unions
Expansionary policies
Four sectors of the economy
Okun's Law
20. Includes payment to the owners of tangible and intangible capital items such as: factories - machines - and copyrights.
Nominal GDP
Traditional economic system
Capital income
Monopsony
21. The adding up of individual economic variables to obtain a large - general picture of the economy.
Pay
Aggregation
Trough
Recession
22. A quantity that is measured in real terms - the actual quantity of a good or service
Real quantity
Law of Diminishing Marginal Utility
Gross Domestic Product (GDP)
Intermediate goods
23. The international sector emphasizes the ________ rate.
Exchange
The quality adjustment bias
Rationing
Output gap
24. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.
Labor supply
Core rate of inflation
Aggregate demand
Seller's surplus
25. Money multiplied by velocity equals nominal GDP.
Quantity equation
Sole proprietorship
Free market
Saving
26. When people's expectations of future inflation do not change even though inflation rates change.
Buyer's surplus
Capital income
The Wealth Effect
Anchored inflation expectations
27. Short-run macroeconomic equilibrium occurs at the level of GDP where the:
AD curve intersects the SAS curve
Real quantity
Expansionary policies
Laffer curve
28. Government policies aimed at stabilizing the economy by eliminating output gaps
Stabilization policies
Total surplus
Recession
decreases increases
29. An increase in this would cause an increase in the aggregate supply
Planned aggregate expenditure (PAE)
Reservation price
Potential output
Labor productivity
30. A macroeconomic policy that directly affects the structure and various institutions of an economy
Aggregate demand
Credibility of monetary policy
Quantity equation
Structural policy
31. The time period between a policy's implementation and its desired effects on an economy.
Corporation
Peak
Aggregate supply
Outside lag
32. Caused by changes in the overall economy.
Cyclical unemployment
Indexing
Laffer curve
Intangible Assets
33. The percentage of working-age people within the labor force
Okun's Law
Participation rate
Marginal tax rate
Average tax rate
34. If the Federal Reserve lowers the reserve ratio - it ______ the bank's required reserves and ______ the quantity of money.
Mixed market
decreases increases
Reservation price
Credibility of monetary policy
35. Unicorporated entity that has shared ownership.
Partnership
Output gap
Labor unions
Four sectors of the economy
36. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.
Fractional
Aggregate Supply
Macroeconomics
Intermediate Goods
37. When prices fall consistently over time - leading to negative inflation.
Deflation
Command economic system
Monopsony
Marginal benefit
38. The relationship between disposable income and spending on consumable goods and services
Aggregate Supply
Consumption function
Potential output
Exchange
39. A law stating that as a person consumes additional units of a good - eventually the utility gained from each additional unit of the good decreases.
Consumption
Interest
Law of Diminishing Marginal Utility
Autonomous Expenditure
40. Maximum price that a customer is willing to pay for a good
Planned aggregate expenditure (PAE)
Asset
Reservation price
Invisible hand
41. The lowest point of the recession
Inflation inertia
Okun's Law
Trough
Intangible Assets
42. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .
Equilibrium price
LRAS
Keynesian economic theory
Consumption
43. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.
Core rate of inflation
Business cycle
Consumption
Supply-side policy
44. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.
Unemployment insurance
Deflation
Free market
Consumption
45. The beginning of a recession
Substitution effect
LRAS
Income
Peak
46. Legal entity that has received a charter from a state or federal government.
Law of Supply
Corporation
Aggregate supply
Saving
47. When both producers and consumers are satisfied with their quantities at market price.
Income
Aggregation
Corporation
Market equilibrium
48. When the people believe that the nation's central bank will keep inflation rates low.
Peak
Gross Domestic Product (GDP)
Marginal cost
Credibility of monetary policy
49. The basic assumption of this model is that in the short run - firms meet demand at present price.
Keynesian model
Invisible hand
Autonomous Expenditure
Aggregation
50. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.
Credibility of monetary policy
Gross National Product (GNP)
NRU
The real GDP per person