Hi All,
I took CLEP Macroeconomics today, and passed with a 67. Wohoo!
I studied for a week using the following resources:
Instantcert
Economics: A Self-teaching Guide (by Steve Slavin)
Standard Deviants: Macro-economics (Video)
http://www.sparknotes.com/economics/
http://www.uncp.edu/home/frederick/MBA515/macronot.htm
http://www.quickmba.com/econ/
I didn't really enjoy this subject, so learning the material didn't come easily to me. But I persevered despite my misgivings, and everything worked out okay in the end.
I actually studied a lot of little details that weren't really needed for the exam. Instead, I encountered lots of questions that repeatedly asked about the same core concepts, in different ways.
Here's a list of things that were mentioned on MY version of the exam:
Capital Goods
Supply & Demand (including a graph question)
Equilibrium (Surplus vs. Shortage)
Full Employment (definition)
Opportunity Cost (definition and a calculation)
Production Possibilities Curve (Efficient vs. Inefficient use of resources)
Left vs. Right Shift (various different curves. Causes and Effects)
Scarcity
Circular Flow of Cash
CPI (calculation, and what is included/not included in it)
GDP (major concept on the exam. Know everything about it.)
GDP Deflator
GDP Gap
Disposable Income
National Income
Real Income
Automatic Stabilizers
Deflation
Recession
Stagflation
Hyperinflation
Inflation (major concept on the exam. Know who winners and losers are during inflationary periods)
Monetary Policy vs. Fiscal Policy (who does what to which thing, and with what effect on various economic measures)
Unemployment (major concept on the exam. Know the various types)
Full Employment (definitions)
Natural Unemployment Rate
Unemployment Rate
Aggregate Supply vs. Aggregate Demand (major concept. Definitions, shifts, and graph questions)
Consumption Function
MPC and MPS (also Average Propensity to Consume vs. Average Propensity to Save)
Multiplier
Theories (major concept. Classical vs. Keynesian vs. Monetarist vs. Ration Expectationists vs. Supply-siders)
Crowding Out
Expansionary vs. Contractionary Policy (both Fiscal and Monetary)
Money (definition. Know the various types...M1, M2, M2+, M3)
Money multiplier (more than one calculation question)
Discount Rate
Cash Reserves
Reserve Ratio
Federal Reserve (what tools it has up its sleeve, and what each tool does)
National Debt
Budget Deficit
Phillips Curve (definition)
Demand-side vs. Supply-side Economic Growth Policies
Absolute vs. Comparative Advantage
Protectionist Policies (Tariffs, Quotas, Subsidies. What effect do they have on US economy/currency)
Exports vs. Imports (definition. What effect does each have on the US economy/currency)
Supply vs. Demand of Money.
This may seem like a lot of information. But it all boils down to just a very small number of CORE topics:
Economic Growth
Supply & Demand
Aggregate Supply & Demand
Fiscal Policy
Monetary Policy
The Business Cycle
Imports & Exports
Money Supply & Demand
GDP and CPI
Macroeconomic Theories
If you know all of the above, you should do well. Your exam might have a slightly different internal consistency, but all the above core concepts will be covered.
I took the full 90 minutes to complete this exam. I had one minute left on the clock as I answered my last question. For some reason, I forgot to 'Mark & Skip' the more difficult questions. This very nearly cost me some questions at the end. But, thankfully, I still managed to make it through all the questions in time. Make sure you don't make the same mistake when you take this exam. Remember....'Mark & Skip'. If a particular question makes your nose bleed, mark it, skip it, and come back to it at the end. If, on the second pass, the question makes your eyeballs roll into the back of your head, GUESS, and move on...it ain't worth the time or the migraine.
Going into this exam, I was nervous that they would ask extremely complex questions. But, on the whole, I don't think the exam went very deep into any particular concept. Also, I don't think the exam was very wide either. As I said in the beginning, the exam tended to ask several questions about a small number of core concepts, with each question varying slightly from the others.
Let me see if I can give you an example of what I mean!
I'll take a major concept covered on the exam:
Expansionary Monetary Policy.
Question 1
Expansionary monetary policy is useful in counteracting which of the following? Answer: Recession.
Question 2
In a recession, which monetary policy would be most effective? Answer: Expansionary Monetary Policy.
Question 3
In a recession, the Federal Reserve is most likely to do which of the following? Answer: Buy Government Securities.
Question 4
If the Federal Reserve is buying government securities, the economy is most likely to be in which of the following? Answer: Recession.
Question 5
If the Federal Reserve buys government securities, how will the supply of money be affected? Answer: The money supply will increase.
Question 6
If there is an increase in the supply of money, Nominal GDP will do which of the following? Answer: Increase.
Question 7
Which of the following would cause an increase in Nominal GDP? Answer: Increasing the money supply.
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Do you see what I mean? None of those questions go very DEEP, or very WIDE. All seven questions merely require you to understand the basics of ONE CONCEPT: Expansionary Monetary Policy (what it is, and what it does).
So, I would say that on this exam, a little knowledge goes a long way.
I hope you find this helpful.
Best of luck to you,
Snazzlefrag