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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 level exceeds equilibrium price






2. Real GDP and around potential GDP






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






4. Economic growth






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






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






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






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






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






10. Equilibrium real GDP exceeds potential GDP






11. Relationship between consumption expenditure and disposable income






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






13. MPC






14. Economic slowdown






15. When AD increases - the price level ________.






16. 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






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






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






19. Increase in AD






20. Slopes downward






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






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






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






24. MPC + MPS






25. Relationship between saving and disposable income






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






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. Increase in long-term growth






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






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






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






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






33. When AD increases - real GDP __________.






34. 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






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






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






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






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






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






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






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






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






43. Potential GDP






44. Decrease in AD






45. Equilibrium real GDP is below potential GDP






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.