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






2. Economic growth






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






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






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






6. Equilibrium real GDP exceeds potential GDP






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






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






9. Equilibrium real GDP is below potential GDP






10. Potential GDP






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






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






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






14. Slopes downward






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






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






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






19. When AD increases - real GDP __________.






20. Real GDP and around potential GDP






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






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






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






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






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






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






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






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






29. MPC + MPS






30. Relationship between saving and disposable income






31. Increase in AD






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






33. When AD increases - the price level ________.






34. 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.






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






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






37. Price level exceeds equilibrium price






38. Economic slowdown






39. Decrease in AD






40. 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






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






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






43. Relationship between consumption expenditure and disposable income






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






45. MPC






46. Increase in long-term growth