01-24-2008, 07:19 PM
Hello. I would like to share with you my experience with my Macroeconomics CLEP I took today in hopes that it will better prepare those who have an interest in taking it.
First of all, I'll admit, I'm a complete dork and I actually enjoy this subject. I know for some, you rank economics up there with pulling teeth, but none-the-less, you CAN pass this test. This was my first computer based CLEP and I loved it. What I really loved was the instant results, instead of waiting 6 weeks for paper based snail mail.
My exam characteristics:
80 questions
90 minutes to take it
5 possible choices per question, not 4
My resources:
InstantCert
Economics, McConnell & Brue, 2008 (My wife's economics textbook, and she had to take the class for 16 weeks!)
Peterson's Practice Exams
Here's a summary of my version:
1) Aggregate Supply & Demand. Did you really think you could take an economics course without these??
Know all about it. Know equilibriums too.
2) GDP: learn it, live it, love it. Know what caused it to increase, what causes it to decrease. Nominal, Real, Fake (just kidding...about the fake one). Equilbrium GDP, Potential GDP.
3) Average & Marginal Propensity to Consume (APC, MPC), know the formula and it's effect on the economy. Also know the Average & Marginal Propensity to Save (APS, MPS). Once again, formula and its effect on the economy.
4) Fiscal & Monetary Policy. This area had about 15-20 questions on it. Remember the big things: Fiscal Policy = Taxes & Gov't Spending. Monetary Policy = Interest Rates & Money supply & the Federal Reserve. Know all about contractionary and expansionary fiscal and monetary policy and when to use it. (I.E. The best fiscal policy action to use during a recession is: ...yadda yadda).
5) Inflation. Define it, its effect on the buying power of money, its effect on the economy, etc.
6) Unemployment & the labor force. The different types (structural, cyclical, frictional, etc.)
7) Money. M1, M2, etc. There wasn't alot of questions on money itself, not in mine at least, but it would be wise to know what types of monies fit each category.
8) Reserve ratios and money multipliers. (1/reserve ratio). Excess reserves. (I.E. If a bank received a new $5,000 deposit and has a reserve ratio of 20%, how much money can the bank loan?).
9) Foreign Exchanges and the appreciaiton, depreciation, and international value of the dollar. (I.E. If the interest rate on American dollars rise, foreign countries will......).
10) Production Possibilities Curves, the multiplier, and the Consumer Price Index. Just the basics.
11) Keynesian, Classical, Rational Expectations, Monetarist schools of thought. Don't worry, just the basics. (IE, Classical = gov't hands off! Let the market do its thing. Keynesian = prices downward inflexible, increase aggregate demand to stimulate economy. RET = people magically anticipate everything.)
I know there is more, but these are the big things I remember.
Some things to remember:
1) InstantCert is a FABULOUS resource for this test. I'm willing to bet if you had a firm grasp on just the flashcards, it'd be enough to get you over a 60 on it.
2) Don't worry about memorizing every formula, I only needed MPC, Reserve Ratio, and the Money Multiplier.
3) Take take take the Petersons practice exams. There are 3, I took two. These are about as close as you are going to get to the actual CLEP. Nothing prepared me more. Did I mention TAKE THE PETERSONS PRACTICE EXAMS?!
4) Unless you are really that good, don't just gaze over the notes and try to take this test. Relax, take a couple weeks to study and feel comfortable with it. I studied for about 3 weeks.
5) Enjoy it! With our economy taking a nose dive and it always being in the news as of late, the test (and studying) enlightens you as to what the heck they're talking about.
Hope this helps, let me know if I can be of further assistance.
First of all, I'll admit, I'm a complete dork and I actually enjoy this subject. I know for some, you rank economics up there with pulling teeth, but none-the-less, you CAN pass this test. This was my first computer based CLEP and I loved it. What I really loved was the instant results, instead of waiting 6 weeks for paper based snail mail.
My exam characteristics:
80 questions
90 minutes to take it
5 possible choices per question, not 4
My resources:
InstantCert
Economics, McConnell & Brue, 2008 (My wife's economics textbook, and she had to take the class for 16 weeks!)
Peterson's Practice Exams
Here's a summary of my version:
1) Aggregate Supply & Demand. Did you really think you could take an economics course without these??
Know all about it. Know equilibriums too.2) GDP: learn it, live it, love it. Know what caused it to increase, what causes it to decrease. Nominal, Real, Fake (just kidding...about the fake one). Equilbrium GDP, Potential GDP.
3) Average & Marginal Propensity to Consume (APC, MPC), know the formula and it's effect on the economy. Also know the Average & Marginal Propensity to Save (APS, MPS). Once again, formula and its effect on the economy.
4) Fiscal & Monetary Policy. This area had about 15-20 questions on it. Remember the big things: Fiscal Policy = Taxes & Gov't Spending. Monetary Policy = Interest Rates & Money supply & the Federal Reserve. Know all about contractionary and expansionary fiscal and monetary policy and when to use it. (I.E. The best fiscal policy action to use during a recession is: ...yadda yadda).
5) Inflation. Define it, its effect on the buying power of money, its effect on the economy, etc.
6) Unemployment & the labor force. The different types (structural, cyclical, frictional, etc.)
7) Money. M1, M2, etc. There wasn't alot of questions on money itself, not in mine at least, but it would be wise to know what types of monies fit each category.
8) Reserve ratios and money multipliers. (1/reserve ratio). Excess reserves. (I.E. If a bank received a new $5,000 deposit and has a reserve ratio of 20%, how much money can the bank loan?).
9) Foreign Exchanges and the appreciaiton, depreciation, and international value of the dollar. (I.E. If the interest rate on American dollars rise, foreign countries will......).
10) Production Possibilities Curves, the multiplier, and the Consumer Price Index. Just the basics.
11) Keynesian, Classical, Rational Expectations, Monetarist schools of thought. Don't worry, just the basics. (IE, Classical = gov't hands off! Let the market do its thing. Keynesian = prices downward inflexible, increase aggregate demand to stimulate economy. RET = people magically anticipate everything.)
I know there is more, but these are the big things I remember.
Some things to remember:
1) InstantCert is a FABULOUS resource for this test. I'm willing to bet if you had a firm grasp on just the flashcards, it'd be enough to get you over a 60 on it.
2) Don't worry about memorizing every formula, I only needed MPC, Reserve Ratio, and the Money Multiplier.
3) Take take take the Petersons practice exams. There are 3, I took two. These are about as close as you are going to get to the actual CLEP. Nothing prepared me more. Did I mention TAKE THE PETERSONS PRACTICE EXAMS?!
4) Unless you are really that good, don't just gaze over the notes and try to take this test. Relax, take a couple weeks to study and feel comfortable with it. I studied for about 3 weeks.
5) Enjoy it! With our economy taking a nose dive and it always being in the news as of late, the test (and studying) enlightens you as to what the heck they're talking about.
Hope this helps, let me know if I can be of further assistance.
![[-]](https://www.degreeforum.net/mybb/images/collapse.png)