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






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






3. Potential GDP






4. 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






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






6. Relationship between saving and disposable income






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






8. 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






9. MPC + MPS






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






11. Decrease in AD






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






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






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






15. Equilibrium real GDP exceeds potential GDP






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






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






18. Real GDP and around potential GDP






19. Equilibrium real GDP is below potential GDP






20. When AD increases - the price level ________.






21. Economic slowdown






22. Increase in long-term growth






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






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






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






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






27. Relationship between consumption expenditure and disposable income






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






29. Price level exceeds equilibrium price






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






32. Increase in AD






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






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






35. MPC






36. Economic growth






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






38. 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.






39. When AD increases - real GDP __________.






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






41. Slopes downward






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






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






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






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






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