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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. Slopes downward






2. MPC






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






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






5. Decrease in AD






6. Potential GDP






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






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






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






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






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






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






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






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






15. Economic slowdown






16. 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.






17. Relationship between consumption expenditure and disposable income






18. Increase in long-term growth






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






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






21. Increase in AD






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






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






24. Equilibrium real GDP is below potential GDP






25. Price level exceeds equilibrium price






26. Real GDP and around potential GDP






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






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






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






30. 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






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






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






33. 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






34. Economic growth






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






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






37. Relationship between saving and disposable income






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






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






40. When AD increases - the price level ________.






41. When AD increases - real GDP __________.






42. Equilibrium real GDP exceeds potential GDP






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






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






45. MPC + MPS






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