Principles of Macroeconomics
-CLEP* Test

Principles of Macroeconomics CLEP Test Version 2

The CLEP Practice Tests above contain 226 multiple-choice practice test questions with study guides (detailed explanations).

The ACE (American Council on Education) recommends 3 lower level college credits for this exam.

Studying, and passing, the practice tests above will allow you to confidently take and pass your Principles of Macroeconomics CLEP test. The overall key concepts, and specific individual points, that will allow you to pass your test are within the practice questions and detailed explanations.

Course Information and Overview

This exam covers material that is typically taught in a semester introductory-level college course. The multiple-choice DANTES/DSST exam consists of about 80 questions and allows 90 minutes to complete. 

Successfully passing this CLEP test requires knowledge and understanding of important economic concepts and terms, understanding and interpretation of economic graphs, evaluation and interpretation of economic data, and application of simple economic models.

Knowledge in the key areas of monetary policies and tools, the structure of the Federal Reserve Bank and the strategies it utilizes to stabilize the economy, foreign exchange markets, imports and exports, and appreciation and depreciation may be covered as well.

The Principles of Macroeconomics CLEP exam contains questions that come from the following topics:

• Basic Economic Concepts (8-12%)
  Production Possibilities Curve (PPC)
  Comparative advantage
  Supply and demand and natural market equilibrium
  Opportunity costs including choice and scarcity of resources
  Business cycles including unemployment, growth and inflation
• Measurement of Economic Performance (12-16%)
  National income accounts
  Gross Domestic Product (GDP) and it's componenents
  Real and nominal GDP and the differences between them
  Circular flow
  Measuring inflation and it's costs
  Price Indices
  Unemployment, definition and types
  Rate of natural unemployment
• National Income and Price Determination (10-15%)
  Aggregate Supply and Demand, and it's determining factors
  Short and long run analyses
  Macroeconomic equilibrium
  Fluctuations in the economy
  Outputs and price levels
• Financial Sector (15-20%)
  Money and banking
  Defining terms: money, stocks, bonds
  Money supplies, creation of money and measurements
  Money demand
  Central bank and monetary controls
  Quantity theory of money
  Interest rates
• Inflation, Unemployment, and Stabilization Policies (20-30%)
  Fiscal and monetary policies
  Supply-side and demand-side effects
  Government debt and deficits
  Inflationary effects and types
  Cost-push inflation, demand-pull inflation
  The Phillips curve
• Economic Growth and Productivity (5-10%)
  Human and physical capital investments
  Research and development, roles and definitions
  Growth policies
• Open Economy: International Trade and Finance (10-15%)
  Balance of payments accounts
  Capital and current accounts
  Balance of trade
  Foreign exchange markets
  Supply and demand of currency, exchange rates, and appreciation and depreciation
  Net exports
  Capital flows in international markets

Complete information and a fact sheet (PDF Format) of what is covered is available from The College Board.