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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 annual percentage rate of change in price level reflected by price indexes






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






3. 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.






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






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






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






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






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






9. Combines pure market and command. Example: Japan






10. Money multiplied by velocity equals nominal GDP.






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






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






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






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






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






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






17. 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).






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






19. The lowest point of the recession






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






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






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






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






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






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






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






28. Represents the governmental tax rate that will best maximize tax revenues.






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






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






31. Unicorporated entity that has shared ownership.






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






33. Total supply of goods and services in an economy






34. The quantity of a good that results in the maximum possible economic surplus from producing and consuming the good.






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






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






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






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






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






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

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41. 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.






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






43. 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.






44. 1 percent more unemployment results in 2 percent less output.

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45. The real cost of changing a listed price.






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






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






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






49. Government policies intended to increase spending and output.






50. 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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