CLEP Principles of Macroeconomics: Study Guide & Test Prep Final Exam

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Choose your answer to the question and click 'Continue' to see how you did. Then click 'Next Question' to answer the next question. When you have completed the free practice test, click 'View Results' to see your results. Good luck!

Question 1 1. 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 2 2. 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 3 3. What should the Federal Reserve do to slow down an economy that is growing too fast?

Question 4 4. A decrease in tax rates while holding government spending constant results in which of these?

Question 5 5. When income rises from $1,000 to $1500 and consumption rises from $800 to $1,150 what is the marginal propensity to consume?

Question 6 6. How would the United States Department of Labor classify a person who worked 10 hours last week?

Question 7 7. If both the demand and the supply for peanut butter declines, what will happen to the equilibrium price and quantity?

Question 8 8. Economists recognize that the economy doesn't grow smoothly, but in regular patterns. Which of these terms best describes this?

Question 9 9. 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 10 10. 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 11 11. Under one formulation of Okun's law, a _____ increase in unemployment results in a _____ percent drop in GDP.

Question 12 12. Why is the GDP deflator considered superior to the consumer price index?

Question 13 13. What does the GDP deflator represent?

Question 14 14. The New York branch of the Federal Reserve:

Question 15 15. What will the purchase of government bonds from the public in the open market by the central bank do?

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CLEP Principles of Macroeconomics: Study Guide & Test Prep Final Free Practice Test Instructions

Choose your answer to the question and click 'Continue' to see how you did. Then click 'Next Question' to answer the next question. When you have completed the free practice test, click 'View Results' to see your results. Good luck!

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