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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. 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






2. Increase in AD






3. Real GDP and around potential GDP






4. Equilibrium real GDP exceeds potential GDP






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






6. Economic slowdown






7. Relationship between consumption expenditure and disposable income






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






9. Potential GDP






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






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






12. When AD increases - real GDP __________.






13. Slopes downward






14. Increase in long-term growth






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






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






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






18. Decrease in AD






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






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






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






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






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






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






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






26. MPC + MPS






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






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






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






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






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






32. MPC






33. 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.






34. Relationship between saving and disposable income






35. Price level exceeds equilibrium price






36. 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






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






38. When AD increases - the price level ________.






39. Economic growth






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






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






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






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






44. Equilibrium real GDP is below potential GDP






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






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