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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. Equilibrium real GDP is below potential GDP






2. Potential GDP






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






4. When AD increases - real GDP __________.






5. Increase in long-term growth






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






7. Relationship between saving and disposable income






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






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






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






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






12. Economic slowdown






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






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






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






16. Price level exceeds equilibrium price






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






18. Equilibrium real GDP exceeds potential GDP






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






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






21. Relationship between consumption expenditure and disposable income






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






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






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






25. 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






26. Slopes downward






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






28. Decrease in AD






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






30. 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.






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






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






33. Economic growth






34. When AD increases - the price level ________.






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






36. MPC






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






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






39. MPC + MPS






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






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






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






43. Real GDP and around potential GDP






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






45. Increase in AD






46. 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