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






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






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






4. Extreme economic growth






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






6. 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.






7. Natural Rate of Unemployment - a rate that will always exist






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






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






10. 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.






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






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






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






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






15. Economic rule stating that if two items satisfy the same need and the price of one rises - people will buy the other.






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






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






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






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






20. The monetary sector focuses on the ________ rate.






21. Goods not counted in the nation's GDP.






22. When inflation suddenly deviates from its normal course.






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






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






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






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






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






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






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






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






32. The beginning of a recession






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






34. The labor sector highlights the rate of ____ .






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






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






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






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






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






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






41. 1 percent more unemployment results in 2 percent less output.


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


43. The difference between the buyer's reservation price and the seller's reservation price. Consumer surplus + Producer surplus






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






45. The lowest point of the recession






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






47. 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.






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






49. The opposite of a substitute good - because it usually completes another item and may lead to more consumption of that item.






50. Measures the ability of an economy to produce (output) goods and services in the short-term and the long-term.