CLEP Principles of Macroeconomics: Study Guide & Test Prep Final Exam
Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come
to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will
Click it to see your results. Good luck!
Question 11.If the real interest rate on a loan is 3% and the expected inflation rate is 1% what is the nominal rate on the loan?
Question 22.If the exchange rate changes from 1 US dollar = 50 Brazilian Real to 1 US dollar = 60 Real, which of the following will happen?
Question 33.What should the Federal Reserve do to slow down an economy that is growing too fast?
Question 44.A decrease in tax rates while holding government spending constant results in which of these?
Question 55.When income rises from $1,000 to $1500 and consumption rises from $800 to $1,150 what is the marginal propensity to consume?
Question 66.How would the United States Department of Labor classify a person who worked 10 hours last week?
Question 77.If both the demand and the supply for peanut butter declines, what will happen to the equilibrium price and quantity?
Question 88.Economists recognize that the economy doesn't grow smoothly, but in regular patterns. Which of these terms best describes this?
Question 99.Your economics professor states that the definition of a depression is double the time frame of economic contraction used to identify a recession. What is wrong with this statement?
Question 1010.If Anytown, USA has a high unemployment rate but also has a large number of unfilled computer programming jobs, what type of unemployment are they suffering from?
Question 1111.Under one formulation of Okun's law, a _____ increase in unemployment results in a _____ percent drop in GDP.
Question 1212.Why is the GDP deflator considered superior to the consumer price index?
Question 1313.What does the GDP deflator represent?
Question 1414.The New York branch of the Federal Reserve:
Question 1515.What will the purchase of government bonds from the public in the open market by the central bank do?
Question 1616.Which is the greatest factor in the shift of an upwards sloping supply curve?
Question 1717.In which direction will the market supply curve slope when suppliers want to sell more goods at higher prices?
Question 1818.If the United States had $5,000,000 in exports, $10,000,000 in GDP, $3,000,000 in imports and $1,000,000 in national savings, what would the net exports be?
Question 1919.How do tariffs and quotas benefit a country?
Question 2020.Economists call the equipment and structures used to produce goods and services:
Question 2121.Which of the following would be considered physical capital in agriculture?
Question 2222.Which of the following would NOT lead to a shift of the short-run Phillips curve?
Question 2323.In the short run, there tends to be a tradeoff between _____ and _____.
Question 2424.Which of the following is NOT associated with foreign trade?
Question 2525.What is the rate at which one currency is converted in another called?
Question 2626.A young professional is proud that she has reached her goal of being able to set aside funds monthly to buy investment tools like stocks and bonds. What motive for money demand does her situation BEST represent?
Question 2727.Under fractional banking, when a bank lends to a customer, which of the following happens?
Question 2828.The United States can produce 20 strawberries or 80 apples, while Canada can produce 15 strawberries or 5 apples. Which of the following describes what will happen if these two countries trade with each other?
Question 2929.Country A's opportunity cost of producing 1 ton of corn is 5 tons of wheat, while Country B's opportunity cost of producing 1 ton of corn is 1/3 of a ton of wheat. Which of the following statements is true?
Question 3030.Labor supply is the total hours that workers or employees are willing to work at a given _____.
Question 3131.Assume that consumption spending is $16,000. For every $200 increase in disposable income, saving goes up by $20. Which of the following statements is true?
Question 3232.Why are all resources essentially scarce?
Question 3333.With the same amount of resources, Country A can produce 25 tons of chicken or 50 tons of wheat. What is Country A's opportunity cost of producing 1 ton of wheat?
Question 3434.When calculating GDP, transfer payments are:
Question 3535.Why would the revenue of a singer from the United States that held a concert abroad not included in the U.S. GDP?
Question 3636.The expansionary monetary policy is designed to:
Question 3737.According to Keynesian economists, if policymakers thought the economy was headed into a recession, what action would be most appropriate?
Question 3838.Your favorite television pundit starts a comment with, 'Findings suggest that the economy has been in contraction for two, straight quarters.' What can you MOST likely predict based on this information?
Question 3939.Which of the following individuals would be counted as unemployed?
Question 4040.Nominal GDP in year one was $16,000, while nominal GDP in year two was $19,320. Real GDP was $16,000 in year one and $15,500 in year two. What does this indicate about the economy?
Question 4141.Which of the following is an inaccurate description of The Federal Reserve?
Question 4242.What is quantity supplied?
Question 4343.One of the biggest capital markets is the stock market which is associated with all of the following except
Question 4444.Which of the following is MOST likely to produce higher economic growth in the long run?
Question 4545.During the 1960's, what was the relationship between inflation and employment?
Question 4646.The U.S. is attempting to bolster trade with several Asian countries. Our incoming goods appear to be less expensive, suggesting that the local currency _____.
Question 4747.Which of the following statements is true regarding the money supply?
Question 4848.Which of the following quotes is attributed to Adam Smith?
Question 4949.Which of the following will cause aggregate supply to decrease?
Question 5050.Josie decided to go to college full-time instead of working. Which of the following is the opportunity cost of going to college for Josie?
CLEP Principles of Macroeconomics: Study Guide & Test Prep Final Exam Instructions
Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back
to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will
appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!