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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. Indicates simultaneous change in price level and money wage rate






2. Economic growth






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






4. MPC






5. Slopes downward






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






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






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






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






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






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






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






13. Decrease in AD






14. Price level exceeds equilibrium price






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






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






17. Economic slowdown






18. 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.






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






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






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






22. Increase in long-term growth






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






24. Increase in AD






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






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






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






28. Real GDP and around potential GDP






29. Relationship between consumption expenditure and disposable income






30. Potential GDP






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






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






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






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






35. 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






36. Relationship between saving and disposable income






37. Equilibrium real GDP is below potential GDP






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






39. 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






40. MPC + MPS






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






42. Equilibrium real GDP exceeds potential GDP






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






44. When AD increases - the price level ________.






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






46. When AD increases - real GDP __________.