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






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






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






4. MPC






5. Price level exceeds equilibrium price






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






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






8. Relationship between consumption expenditure and disposable income






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






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






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






12. Slopes downward






13. When AD increases - real GDP __________.






14. Economic slowdown






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






16. Equilibrium real GDP is below potential GDP






17. Relationship between saving and disposable income






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






19. Potential GDP






20. Increase in AD






21. 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






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






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






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






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






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






27. When AD increases - the price level ________.






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






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






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






31. Decrease in AD






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






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






34. Increase in long-term growth






35. 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.






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






37. 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






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






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






40. MPC + MPS






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






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






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






44. Economic growth






45. Real GDP and around potential GDP






46. Equilibrium real GDP exceeds potential GDP