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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. Goods not counted in the nation's GDP.






2. The total planned spending on final goods and services.






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

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4. Government policies intended to increase spending and output.






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






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






7. Total tax paid divided by total (taxable) income - as a percentage.






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






9. Money multiplied by velocity equals nominal GDP.






10. The total demand for a country's output. It includes demands for consumption - investment - government purchases - and net exports.






11. 1 percent more unemployment results in 2 percent less output.

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






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






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






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






16. A policy that affects potential output






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






18. The monetary sector focuses on the ________ rate.






19. The output per employed worker






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






21. 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.






22. 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.






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






24. Payments that the government makes to unemployed workers.






25. 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






26. Combines pure market and command. Example: Japan






27. 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.






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






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






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






31. The beginning of a recession






32. The relationship between disposable income and spending on consumable goods and services






33. The lowest point of the recession






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






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






36. Unicorporated entity that has shared ownership.






37. The difference between the price received by the seller and the seller's reservation price

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38. When the rate of inflation is extremely high.






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






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






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






42. Real Estate - Equipment - and Cash (physical assets)






43. 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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44. When an economic unit makes more than it spends






45. 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.






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






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






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






49. The ease with which an asset can be converted to currency.






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