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






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






3. A market with unrestricted trading of goods - where the prices of goods are determined by supply and demand.






4. Used in the production of final goods - but instead of being consumed - are available for reuse.






5. The lowest point of the recession






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






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






8. The amount spent by a household on goods and services such as: entertainment - food - and other perishables.






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






10. Economies based on capitalism have microeconomic instability and that government is required to properly stabilize the economy.






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






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






13. 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.






14. When quantity supplied is more than quantity demanded. The formula for excess supply is: Supply - Demand = Excess Supply






15. A result of there only being one buyer of a resource input - good - or service.






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






17. 1 percent more unemployment results in 2 percent less output.

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18. 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.






19. The amount of workers that are willing to work for a real wage.






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






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






22. Legal entity that has received a charter from a state or federal government.






23. A free market system that relies on private property ownership and supply and demand






24. A policy that affects potential output






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






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






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






28. 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.






29. The tendency for nominal interest rates to be high when inflation rates are high and low when inflation rates are low.






30. Involves increasing a nominal quantity so that it remains unaffected by increases in inflation






31. A Scottish man (1723-1790) who is known as the father of modern economics.






32. The portion of planned aggregate expenditure that is not based on output






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






34. 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).






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






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






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






38. The monetary sector focuses on the ________ rate.






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






40. A law stating that as the price of a product increases the demand of that product decreases - while if the price of a product decreases the demand for that product increases.






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






42. 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






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






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






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

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46. The part of economics study that looks at the operation of a nation's economy as a whole






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






48. 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.






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






50. Extreme economic growth






Can you answer 50 questions in 15 minutes?



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