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






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






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






4. The continuing increase in the average level of prices of goods and services over time.






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






6. Organizations that act as moderators between employers and employees






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






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






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






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






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






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






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






14. When inflation suddenly deviates from its normal course.






15. Long Run Aggregate Supply - The natural level of GDP - shown vertical on a graph. When LRAS shifts - SRAS (Short Run Aggregate Supply) will follow .






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






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






18. 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.






19. 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.






20. 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.






21. 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).






22. When both producers and consumers are satisfied with their quantities at market price.






23. 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






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






25. Unicorporated entity that has shared ownership.






26. Maximum price that a customer is willing to pay for a good






27. The labor sector highlights the rate of ____ .






28. Concerned with analyzing whether or not a policy should be used.






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






30. Patents - Goodwill - and Trademarks (lack physical substance)






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






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






33. A record of economic increases and decreases over time.






34. 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.






35. When economists fail to account for improvements in goods or services and incorrectly report inflation as higher.






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






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






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






39. A cost that is beyond recovery the moment a consumer decides to purchase a certain good or service is made






40. A policy that affects potential output






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






42. 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.






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






44. The output per employed worker






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






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






47. Can be found by multiplying the average labor productivity by the percentage of people that are working in the economy.






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






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






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