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






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






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






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






5. Relationship between saving and disposable income






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






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






8. Decrease in AD






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






10. Price level exceeds equilibrium price






11. MPC






12. When AD increases - the price level ________.






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






14. Equilibrium real GDP is below potential GDP






15. 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






16. Potential GDP






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






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






19. Relationship between consumption expenditure and disposable income






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






21. Slopes downward






22. Economic growth






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






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






25. 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.






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






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






28. 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






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






30. Equilibrium real GDP exceeds potential GDP






31. Economic slowdown






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






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






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






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






36. Increase in long-term growth






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






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






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






40. Real GDP and around potential GDP






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






42. MPC + MPS






43. When AD increases - real GDP __________.






44. Increase in AD






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






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