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






3. Decrease in AD






4. Real GDP and around potential GDP






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






6. Economic slowdown






7. Equilibrium real GDP exceeds potential GDP






8. Relationship between consumption expenditure and disposable income






9. Increase in long-term growth






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






11. When AD increases - the price level ________.






12. MPC + MPS






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






14. 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.






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






16. Relationship between saving and disposable income






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






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






19. When AD increases - real GDP __________.






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. The value of consumption goods and services bought by households






22. Equilibrium real GDP is below potential GDP






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






24. 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






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






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






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






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






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






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






31. MPC






32. Economic growth






33. Increase in AD






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






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






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






37. Potential GDP






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






39. Price level exceeds equilibrium price






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






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






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






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






44. Slopes downward






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






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






Can you answer 50 questions in 15 minutes?



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