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CLEP Principles of Macroeconomics: Study Guide & Test Prep

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Let us help you prepare to earn a passing grade on the CLEP Principles of Macroeconomics exam with the short video lessons in this test prep course. Our learning tools are mobile friendly, accessible from any mobile device and make a comprehensive study guide to use to prepare for this test and earn college credit.
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15 Chapters in CLEP Principles of Macroeconomics: Study Guide & Test Prep

15 chapters in CLEP Principles of Macroeconomics: Study Guide & Test Prep

Ch 1. Scarcity, Choice, and The Production Possibilities Curve {{cp.topicAssetIdToProgress[1911].percentComplete}}% complete
Course Progress Best Score
Lesson 1 - Consumer Price Index: Measuring the Cost of Living and Inflation Score: {{cp.lessonAssetIdToProgress[1935].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1935].bestScoreQuestions}}  Take Quiz Optional
Lesson 2 - The GDP Deflator and Consumer Price Index Score: {{cp.lessonAssetIdToProgress[1936].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1936].bestScoreQuestions}}  Take Quiz Optional
Lesson 3 - Consumer Price Index and the Substitution Bias Score: {{cp.lessonAssetIdToProgress[1937].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1937].bestScoreQuestions}}  Take Quiz Optional
Lesson 4 - Adjusting Wages for the Inflation Rate Score: {{cp.lessonAssetIdToProgress[1938].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1938].bestScoreQuestions}}  Take Quiz Optional
Lesson 5 - Gross Domestic Product: Nominal vs. Real GDP Score: {{cp.lessonAssetIdToProgress[1939].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1939].bestScoreQuestions}}  Take Quiz Optional
Lesson 6 - Gross Domestic Product: How to Calculate Real GDP Score: {{cp.lessonAssetIdToProgress[2576].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2576].bestScoreQuestions}}  Take Quiz Optional
Lesson 7 - How to Calculate Real GDP Growth Rates Score: {{cp.lessonAssetIdToProgress[2420].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2420].bestScoreQuestions}}  Take Quiz Optional
Lesson 8 - Cost-Push Inflation: How the Supply Side of the Economy Leads to Inflation Score: {{cp.lessonAssetIdToProgress[2473].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2473].bestScoreQuestions}}  Take Quiz Optional
Lesson 9 - The Multiplier Effect and the Simple Spending Multiplier: Definition and Examples Score: {{cp.lessonAssetIdToProgress[2436].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2436].bestScoreQuestions}}  Take Quiz Optional
Lesson 10 - Demand-Pull Inflation vs Cost-Push Inflation Score: {{cp.lessonAssetIdToProgress[1940].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1940].bestScoreQuestions}}  Take Quiz Optional
Lesson 11 - Effects of Inflation on Suppliers and Demanders Score: {{cp.lessonAssetIdToProgress[1942].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1942].bestScoreQuestions}}  Take Quiz Optional
Lesson 12 - Equation of Exchange & Inflation Rate Score: {{cp.lessonAssetIdToProgress[82071].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[82071].bestScoreQuestions}}  Take Quiz Optional
Course Progress Best Score
Lesson 1 - Defining and Measuring the Unemployment Rate Score: {{cp.lessonAssetIdToProgress[1944].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1944].bestScoreQuestions}}  Take Quiz Optional
Lesson 2 - Why the Unemployment Rate Decreases and Increases Score: {{cp.lessonAssetIdToProgress[1945].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1945].bestScoreQuestions}}  Take Quiz Optional
Lesson 3 - Three Types of Unemployment: Cyclical, Frictional & Structural Score: {{cp.lessonAssetIdToProgress[1946].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1946].bestScoreQuestions}}  Take Quiz Optional
Lesson 4 - Natural Rate of Unemployment: Definition and Formula Score: {{cp.lessonAssetIdToProgress[1947].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1947].bestScoreQuestions}}  Take Quiz Optional
Lesson 5 - Rational Expectations in the Economy and Unemployment Score: {{cp.lessonAssetIdToProgress[1948].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1948].bestScoreQuestions}}  Take Quiz Optional
Lesson 6 - Minimum Wage and its Effects on Employment Score: {{cp.lessonAssetIdToProgress[2409].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2409].bestScoreQuestions}}  Take Quiz Optional
Lesson 7 - Natural Rate of Unemployment: Graphs & Analysis Score: {{cp.lessonAssetIdToProgress[82072].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[82072].bestScoreQuestions}}  Take Quiz Optional
Lesson 8 - Measuring the Costs of Unemployment Score: {{cp.lessonAssetIdToProgress[82073].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[82073].bestScoreQuestions}}  Take Quiz Optional
Lesson 9 - Efficiency Wage Theory & Impact on Labor Market Score: {{cp.lessonAssetIdToProgress[82074].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[82074].bestScoreQuestions}}  Take Quiz Optional
Course Progress Best Score
Lesson 1 - The Keynesian Model and the Classical Model of the Economy Score: {{cp.lessonAssetIdToProgress[2459].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2459].bestScoreQuestions}}  Take Quiz Optional
Lesson 2 - Supply and Demand Curves in the Classical Model and Keynesian Model Score: {{cp.lessonAssetIdToProgress[2460].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2460].bestScoreQuestions}}  Take Quiz Optional
Lesson 3 - Aggregate Supply and Aggregate Demand (AS-AD) Model Score: {{cp.lessonAssetIdToProgress[2411].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2411].bestScoreQuestions}}  Take Quiz Optional
Lesson 4 - Understanding Shifts in Labor Supply and Labor Demand Score: {{cp.lessonAssetIdToProgress[2410].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2410].bestScoreQuestions}}  Take Quiz Optional
Lesson 5 - Marginal Propensity to Consume: Definition and Formula of the MPC Score: {{cp.lessonAssetIdToProgress[1952].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1952].bestScoreQuestions}}  Take Quiz Optional
Lesson 6 - Government Spending, GDP, and Crowding Out Private Investment Score: {{cp.lessonAssetIdToProgress[1954].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1954].bestScoreQuestions}}  Take Quiz Optional
Lesson 7 - Aggregate Supply in the Economy: Definition and Determinants Score: {{cp.lessonAssetIdToProgress[1955].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1955].bestScoreQuestions}}  Take Quiz Optional
Lesson 8 - Aggregate Supply in the Short Run Score: {{cp.lessonAssetIdToProgress[1956].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1956].bestScoreQuestions}}  Take Quiz Optional
Lesson 9 - Sticky Wages and Prices: Effect on Equilibrium Score: {{cp.lessonAssetIdToProgress[1957].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1957].bestScoreQuestions}}  Take Quiz Optional
Lesson 10 - Favorable Supply Shocks & Unfavorable Supply Shocks Score: {{cp.lessonAssetIdToProgress[1959].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1959].bestScoreQuestions}}  Take Quiz Optional
Lesson 11 - Impact of Marginal Propensity to Consume on Individual & National Economy Score: {{cp.lessonAssetIdToProgress[82075].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[82075].bestScoreQuestions}}  Take Quiz Optional
Lesson 12 - Marginal Propensity to Save: Formula & Relationship to MPC Score: {{cp.lessonAssetIdToProgress[82076].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[82076].bestScoreQuestions}}  Take Quiz Optional
Lesson 13 - Consumption Function: Relationship Between Marginal & Average Propensity to Consume Score: {{cp.lessonAssetIdToProgress[82077].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[82077].bestScoreQuestions}}  Take Quiz Optional
Lesson 14 - Marginal Propensity to Consume & Multiplier Effect Score: {{cp.lessonAssetIdToProgress[82078].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[82078].bestScoreQuestions}}  Take Quiz Optional
Course Progress Best Score
Lesson 1 - Economic Growth: How to Raise a Nation's Potential Output Score: {{cp.lessonAssetIdToProgress[2471].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2471].bestScoreQuestions}}  Take Quiz Optional
Lesson 2 - How Real GDP per Capita Affects the Standard of Living Score: {{cp.lessonAssetIdToProgress[2472].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2472].bestScoreQuestions}}  Take Quiz Optional
Lesson 3 - Productivity: The Economy's Long-Run Growth Engine Score: {{cp.lessonAssetIdToProgress[1976].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1976].bestScoreQuestions}}  Take Quiz Optional
Lesson 4 - Investment in Human Capital and Productivity Score: {{cp.lessonAssetIdToProgress[1977].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1977].bestScoreQuestions}}  Take Quiz Optional
Lesson 5 - Physical Capital: Definition and Effects on Productivity Score: {{cp.lessonAssetIdToProgress[1978].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1978].bestScoreQuestions}}  Take Quiz Optional
Lesson 6 - How Technology, Research & Development Affect Productivity Score: {{cp.lessonAssetIdToProgress[1980].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1980].bestScoreQuestions}}  Take Quiz Optional
Lesson 7 - Growth Policy and Economic Productivity Score: {{cp.lessonAssetIdToProgress[1981].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1981].bestScoreQuestions}}  Take Quiz Optional
Lesson 8 - National Income Accounting Score: {{cp.lessonAssetIdToProgress[82080].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[82080].bestScoreQuestions}}  Take Quiz Optional
Course Progress Best Score
Lesson 1 - Types of Financial Assets: Money, Stocks & Bonds Score: {{cp.lessonAssetIdToProgress[1983].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1983].bestScoreQuestions}}  Take Quiz Optional
Lesson 2 - Present and Future Value: Calculating the Time Value of Money Score: {{cp.lessonAssetIdToProgress[1984].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1984].bestScoreQuestions}}  Take Quiz Optional
Lesson 3 - Measuring the Money Supply: Explanation and Examples Score: {{cp.lessonAssetIdToProgress[1985].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1985].bestScoreQuestions}}  Take Quiz Optional
Lesson 4 - What is Money? - Definition and Types Score: {{cp.lessonAssetIdToProgress[2877].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2877].bestScoreQuestions}}  Take Quiz Optional
Lesson 5 - The Four Basic Functions of Money Score: {{cp.lessonAssetIdToProgress[3155].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[3155].bestScoreQuestions}}  Take Quiz Optional
Lesson 6 - Fractional Reserve System: Required and Excess Reserves Score: {{cp.lessonAssetIdToProgress[1986].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1986].bestScoreQuestions}}  Take Quiz Optional
Lesson 7 - How Money Is Made: Understanding Bank Lending in the Economy Score: {{cp.lessonAssetIdToProgress[1987].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1987].bestScoreQuestions}}  Take Quiz Optional
Lesson 8 - Money and Multiplier Effect: Formula and Reserve Ratio Score: {{cp.lessonAssetIdToProgress[1988].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1988].bestScoreQuestions}}  Take Quiz Optional
Lesson 9 - Money Demand and Interest Rates: Economics of Demand Score: {{cp.lessonAssetIdToProgress[1989].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1989].bestScoreQuestions}}  Take Quiz Optional
Lesson 10 - The Money Market: Money Supply and Money Demand Curves Score: {{cp.lessonAssetIdToProgress[1990].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1990].bestScoreQuestions}}  Take Quiz Optional
Lesson 11 - Coupon Rate: Definition, Formula & Calculation Score: {{cp.lessonAssetIdToProgress[15995].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[15995].bestScoreQuestions}}  Take Quiz Optional
Course Progress Best Score
Lesson 1 - What is the Federal Reserve System? Score: {{cp.lessonAssetIdToProgress[2577].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2577].bestScoreQuestions}}  Take Quiz Optional
Lesson 2 - Reserve Requirement, Open Market Operations and the Discount Rate Score: {{cp.lessonAssetIdToProgress[1993].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1993].bestScoreQuestions}}  Take Quiz Optional
Lesson 3 - Open Market Operations & the Federal Reserve: Definition & Examples Score: {{cp.lessonAssetIdToProgress[2578].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2578].bestScoreQuestions}}  Take Quiz Optional
Lesson 4 - How the Reserve Ratio Affects the Money Supply Score: {{cp.lessonAssetIdToProgress[2579].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2579].bestScoreQuestions}}  Take Quiz Optional
Lesson 5 - The Discount Rate & Monetary Policy: How Banks Can Borrow Money from the Federal Reserve Score: {{cp.lessonAssetIdToProgress[2580].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2580].bestScoreQuestions}}  Take Quiz Optional
Lesson 6 - How the Federal Reserve Changes the Money Supply and Affects Interest Rates Score: {{cp.lessonAssetIdToProgress[1994].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1994].bestScoreQuestions}}  Take Quiz Optional
Lesson 7 - Quantity Theory of Money: Output and Prices Score: {{cp.lessonAssetIdToProgress[1995].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1995].bestScoreQuestions}}  Take Quiz Optional
Lesson 8 - The Velocity of Money: Definition and Circulation Speed Score: {{cp.lessonAssetIdToProgress[2708].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2708].bestScoreQuestions}}  Take Quiz Optional
Lesson 9 - Real vs. Nominal Interest Rates and Changes in Prices Score: {{cp.lessonAssetIdToProgress[1996].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1996].bestScoreQuestions}}  Take Quiz Optional
Lesson 10 - Private Investment and Real Interest Rates Score: {{cp.lessonAssetIdToProgress[1997].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1997].bestScoreQuestions}}  Take Quiz Optional
Lesson 11 - Hyperinflation, Money Supply and the Consumer Price Index Score: {{cp.lessonAssetIdToProgress[1998].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[1998].bestScoreQuestions}}  Take Quiz Optional
Course Progress Best Score
Lesson 1 - Fiscal Policy: The Keynesian Revolution Score: {{cp.lessonAssetIdToProgress[2878].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2878].bestScoreQuestions}}  Take Quiz Optional
Lesson 2 - Fiscal Policy Tools: Government Spending and Taxes Score: {{cp.lessonAssetIdToProgress[2000].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2000].bestScoreQuestions}}  Take Quiz Optional
Lesson 3 - Expansionary Fiscal Policy and Aggregate Demand Score: {{cp.lessonAssetIdToProgress[2002].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2002].bestScoreQuestions}}  Take Quiz Optional
Lesson 4 - Contractionary Fiscal Policy and Aggregate Demand Score: {{cp.lessonAssetIdToProgress[2003].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2003].bestScoreQuestions}}  Take Quiz Optional
Lesson 5 - Fiscal Policy and the Effects on Unemployment Score: {{cp.lessonAssetIdToProgress[2004].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2004].bestScoreQuestions}}  Take Quiz Optional
Lesson 6 - Understanding the Progressive Tax Code Score: {{cp.lessonAssetIdToProgress[2005].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2005].bestScoreQuestions}}  Take Quiz Optional
Lesson 7 - Automatic Stabilizers in Economics: Definition & Examples Score: {{cp.lessonAssetIdToProgress[2006].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2006].bestScoreQuestions}}  Take Quiz Optional
Lesson 8 - Expansionary Monetary Policy: Helping the Economy Grow Score: {{cp.lessonAssetIdToProgress[2007].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2007].bestScoreQuestions}}  Take Quiz Optional
Lesson 9 - Contractionary Monetary Policy: Slowing the Economy Down Score: {{cp.lessonAssetIdToProgress[2009].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2009].bestScoreQuestions}}  Take Quiz Optional
Lesson 10 - The Importance of Timing in Fiscal and Monetary Policy Decisions Score: {{cp.lessonAssetIdToProgress[2010].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2010].bestScoreQuestions}}  Take Quiz Optional
Lesson 11 - Supply-Side Economics in Fiscal and Monetary Policy Score: {{cp.lessonAssetIdToProgress[2011].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2011].bestScoreQuestions}}  Take Quiz Optional
Lesson 12 - Short-Term GDP and National Debt: Keynes' Theory Score: {{cp.lessonAssetIdToProgress[2012].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2012].bestScoreQuestions}}  Take Quiz Optional
Lesson 13 - What is a Contractionary Gap? - Identifying an Economy That is Below Potential Score: {{cp.lessonAssetIdToProgress[2987].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2987].bestScoreQuestions}}  Take Quiz Optional
Lesson 14 - Calculating the Size of a Contractionary Gap Score: {{cp.lessonAssetIdToProgress[5507].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[5507].bestScoreQuestions}}  Take Quiz Optional
Lesson 15 - What is an Expansionary Gap? - Identifying an Economy That is Above Potential Score: {{cp.lessonAssetIdToProgress[2988].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2988].bestScoreQuestions}}  Take Quiz Optional
Lesson 16 - Calculating the Size of an Expansionary Gap Score: {{cp.lessonAssetIdToProgress[5508].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[5508].bestScoreQuestions}}  Take Quiz Optional
Lesson 17 - Managing the Economy with Fiscal and Monetary Policies Score: {{cp.lessonAssetIdToProgress[2989].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2989].bestScoreQuestions}}  Take Quiz Optional
Course Progress Best Score
Lesson 1 - Foreign Currency Exchange: Supply and Demand for Currency Score: {{cp.lessonAssetIdToProgress[2014].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2014].bestScoreQuestions}}  Take Quiz Optional
Lesson 2 - Exchange Rate: Determination and Conversion Across Countries Score: {{cp.lessonAssetIdToProgress[2015].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2015].bestScoreQuestions}}  Take Quiz Optional
Lesson 3 - Currency Appreciation & Depreciation: Effects of Exchange Rate Changes Score: {{cp.lessonAssetIdToProgress[2016].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2016].bestScoreQuestions}}  Take Quiz Optional
Lesson 4 - How Fiscal and Monetary Policies Affect the Exchange Rate Score: {{cp.lessonAssetIdToProgress[2017].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2017].bestScoreQuestions}}  Take Quiz Optional
Lesson 5 - How Currency Changes Affect Imports and Exports Score: {{cp.lessonAssetIdToProgress[2018].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2018].bestScoreQuestions}}  Take Quiz Optional
Lesson 6 - Achieving Trade Balance: Trade Deficit and Surplus Examples Score: {{cp.lessonAssetIdToProgress[2019].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2019].bestScoreQuestions}}  Take Quiz Optional
Lesson 7 - Balance of Payments: Current Account & Measuring Foreign Trade Score: {{cp.lessonAssetIdToProgress[2020].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2020].bestScoreQuestions}}  Take Quiz Optional
Lesson 8 - Balance of Payments with Financial Accounts: Measuring Foreign Trade Score: {{cp.lessonAssetIdToProgress[2021].bestScoreCorrect}}/{{cp.lessonAssetIdToProgress[2021].bestScoreQuestions}}  Take Quiz Optional

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