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CLEP Macroeconomics: National Income And Price Determination

Subjects : clep, economics
Instructions:
  • Answer 46 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Price level exceeds equilibrium price






2. The ratio of change in consumption to change in income






3. The quantity of real GDP demanded equals the quantity of real GDP supplied






4. The fraction of a change in disposable income that is saved






5. Equilibrium real GDP is below potential GDP






6. Relationship between the quantity of real GDP demanded and the price level






7. Relationship between consumption expenditure and disposable income






8. MPC + MPS






9. Real GDP and around potential GDP






10. Indicates simultaneous change in price level and money wage rate






11. Potential GDP






12. Decrease in AD






13. People change consumption preferences daily between domestic goods and services and foreign goods and services






14. When potential GDP increases - both LAS and SAS curves shift _____.






15. The value of consumption goods and services bought by households






16. The relationship between the quantity of real GDP supplied and the price level when the money wage rate and all other influences on production plans remain constant






17. A non-price related change causes a _____ in the demand curve






18. A rise in the price level at a constant money wage rate brings a change in employment and real GDP and a movement along the ___ curve.






19. When the money wage rate rises - the SAS curve shifts ____ but the LAS curve remains unchanged.






20. The relationship between the quantity of real GDP supplied and the price level when real GDP equals potential GDP; potential GDP is real GDP when all the economy's labor - capital - land - and entrepreneurial ability are fully employed






21. Slopes downward






22. Equilibrium real GDP exceeds potential GDP






23. Increase in long-term growth






24. Sum of the quantities of all the final goods produced in the economy






25. Disposable Income (DI) = Consumption(C) + Saving Consumption (S)






26. The government's attempt to influence the economy by setting and changing taxes - transfer payments - and expenditures on goods and services






27. The relationship between the quantity of real GDP supplied and the price level






28. Change in consumption expenditure divided by the change in disposable income






29. Increase in AD






30. The government's attempt to influence the economy by setting and changing interest rates - the exchange rate - and the quantity of money






31. When Short Run Aggregate Supply decreases - Real GDP falls below Potential GDP and the price level _________.






32. Price levels rise due to a decrease in Short Run Aggregate Supply






33. Job expectations - fiscal or monetary policy - world economy - inflation - profits






34. MPC






35. The change in savings divided by the change in disposable income






36. Tendency for increases in the price level to lower the purchasing power of assets of financial assets and reduce total spending in the economy






37. A persistent increase in aggregate demand that exceeds the increase in potential GDP






38. Relationship between saving and disposable income






39. The point on a consumption function where the consumption line intersects the 45 degree line






40. A rise in both the price level and the money wage rate that maintains full employment brings a movement along the ____ curve.






41. Economic slowdown






42. A rise in resource costs (labor - fuel - material - etc) will _______ SAS.






43. When AD increases - real GDP __________.






44. When AD increases - the price level ________.






45. Increased AD brings a(n) ___________ in SAS.






46. Economic growth