CLEP Macroeconomics Terms & Definitions Practice Test

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Store of value
Economic growth is measured in terms of annual increases in real GDP or real GDP per capital. growth is modeled as a rightward shift in the long-run aggregate supply curve or an outward shift in the production possibility frontier gov policies to promote economic growth include support for education, vocational training, research grants, and development programs
If a good or service is perishable, you will benefit from a nonperishable item that will hold the value of past production into the future. by exchanging this output for something with a more stable value, the benefits of production can be transferred into the future. money can often serve this purpose relatively well
Practice of buying at a low price and selling at a high price. arbitrage prevents exchange rates from being different in one place than in another for any significant period of time
Subsidy payments made by the government must be part of income of farmers, for example but are not made in exchange for goods or services, so they are not part of GDP