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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. Decrease in AD






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






3. Economic slowdown






4. 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.






5. Increase in AD






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






7. MPC + MPS






8. Economic growth






9. MPC






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






11. Real GDP and around potential GDP






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






13. Relationship between saving and disposable income






14. Price level exceeds equilibrium price






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






16. Potential GDP






17. Equilibrium real GDP is below potential GDP






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






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






20. 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






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






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






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






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






25. 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






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






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






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






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






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






31. When AD increases - the price level ________.






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






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






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






35. Relationship between consumption expenditure and disposable income






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






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






38. Equilibrium real GDP exceeds potential GDP






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






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






41. When AD increases - real GDP __________.






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






43. Increase in long-term growth






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






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






46. Slopes downward







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