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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. A policy that affects potential output






2. Is equal to Consumption + Government Expenditures + Investment + Exports - Imports The market value of all goods and services produced within a nation during a specified amount of time.






3. When the people believe that the nation's central bank will keep inflation rates low.






4. Used to demonstrate shifts in income distribution among a population over time.






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






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






7. The government office that is responsible for projecting federal surpluses and deficits






8. Business entity which legally has no separate existence from its owner.






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






10. A GDP decline that lasts two-quarters (six months). A period of slow economic growth






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






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






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






14. Money multiplied by velocity equals nominal GDP.






15. (n) something of value; a resource; an advantage






16. The price of a good or service in relation to the price of other goods and services.






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






18. The annual percentage rate of change in price level reflected by price indexes






19. The smallest dollar amount for which a seller would be willing to sell an additional unit - generally equal to marginal cost


20. An extreme decline in the rate of inflation. Can lead to high levels of unemployment and recessionary gaps.






21. 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.






22. The increase in total benefit that comes from producing one additional unit.






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






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






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






26. The output per employed worker






27. The increase in total cost that comes from producing one additional unit of a specific good or service.






28. 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.






29. A phrase coined by Adam Smith to describe the process that turns self directed gain into social and economic benefits for all.






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






31. 1 percent more unemployment results in 2 percent less output.


32. The beginning of a recession






33. The lowest point of the recession






34. The level of output where output equals planned aggregate expenditure






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






36. Most free-market banking systems are based on __________ reserves.






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






38. A macroeconomic policy that directly affects the structure and various institutions of an economy






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






40. The difference between a buyer's reservation price (the price they want to pay) and the actual price paid for a good or service


41. 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






42. When goods and services are made and consumed at the best levels for the society. Nothing more can be acheived with the resources available.






43. The monetary sector focuses on the ________ rate.






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






45. When an economic unit makes more than it spends






46. There is an ___________ ___ when aggregate output is above potential output






47. Describes how the economy directly effects the actions policymakers take.






48. Sole proprietorships - partnerships - and corporations are private producing units of the economy knows as __________.






49. Goods like food and clothing that have a short lifespan.






50. The time period between a policy's implementation and its desired effects on an economy.