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






2. 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






3. 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






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






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






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






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






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






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






10. Decrease in AD






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






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






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






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






15. Real GDP and around potential GDP






16. Economic growth






17. Relationship between saving and disposable income






18. Increase in long-term growth






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






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






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






22. MPC + MPS






23. Slopes downward






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






25. Increase in AD






26. Equilibrium real GDP exceeds potential GDP






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






28. Potential GDP






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






30. Relationship between consumption expenditure and disposable income






31. Economic slowdown






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






33. Equilibrium real GDP is below potential GDP






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






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






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






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






38. When AD increases - the price level ________.






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






40. Price level exceeds equilibrium price






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






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






43. When AD increases - real GDP __________.






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






45. MPC






46. 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.