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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. Potential GDP






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






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






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






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






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






7. Economic growth






8. Equilibrium real GDP is below potential GDP






9. Equilibrium real GDP exceeds potential GDP






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






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






12. When AD increases - the price level ________.






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






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






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






16. MPC






17. Decrease in AD






18. 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.






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






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






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






22. 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






23. Economic slowdown






24. Relationship between consumption expenditure and disposable income






25. Slopes downward






26. MPC + MPS






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






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






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






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






31. Increase in AD






32. Real GDP and around potential GDP






33. When AD increases - real GDP __________.






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






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






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






37. Relationship between saving and disposable income






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






39. Price level exceeds equilibrium price






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






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






42. Increase in long-term growth






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






44. 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






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






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