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CLEP Macroeconomics: National Income And Price Determination

Subjects : clep, economics
Instructions:
  • Answer 46 questions in 30 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. Relationship between saving and disposable income






2. Real GDP and around potential GDP






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






4. Increase in AD






5. Price level exceeds equilibrium price






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






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






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






9. 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






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






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






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






13. When AD increases - real GDP __________.






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






15. Relationship between consumption expenditure and disposable income






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






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






18. When AD increases - the price level ________.






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






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






21. Equilibrium real GDP is below potential GDP






22. Decrease in AD






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






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






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






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






27. Potential GDP






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






29. MPC






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






31. MPC + MPS






32. Slopes downward






33. Increase in long-term growth






34. Economic growth






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






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






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






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






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






40. Equilibrium real GDP exceeds potential GDP






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






42. 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.






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






44. Economic slowdown






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






46. 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