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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. Slopes downward






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






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






4. MPC






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






6. MPC + MPS






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






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






9. Real GDP and around potential GDP






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






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






12. 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






13. Decrease in AD






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






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






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






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






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






19. 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






20. Equilibrium real GDP is below potential GDP






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






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






23. When AD increases - real GDP __________.






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






25. Increase in AD






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






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






28. Economic growth






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






30. Potential GDP






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






32. Price level exceeds equilibrium price






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






34. Economic slowdown






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






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






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






38. When AD increases - the price level ________.






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






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






41. 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.






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






43. Relationship between saving and disposable income






44. Equilibrium real GDP exceeds potential GDP






45. Relationship between consumption expenditure and disposable income






46. Increase in long-term growth