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






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






3. 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.






4. Real GDP and around potential GDP






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






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






7. Equilibrium real GDP is below potential GDP






8. MPC + MPS






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






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






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






12. 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






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






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






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






16. When AD increases - the price level ________.






17. MPC






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






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






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






21. Potential GDP






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






23. Relationship between saving and disposable income






24. Increase in long-term growth






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






26. Price level exceeds equilibrium price






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






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






29. Slopes downward






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






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






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






33. Economic growth






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






35. Economic slowdown






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






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






38. Increase in AD






39. Equilibrium real GDP exceeds potential GDP






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






41. Relationship between consumption expenditure and disposable income






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






43. 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






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






45. Decrease in AD






46. When AD increases - real GDP __________.