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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. Relationship between consumption expenditure and disposable income






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






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






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






5. Potential GDP






6. MPC






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






8. 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






9. Slopes downward






10. 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.






11. Increase in long-term growth






12. MPC + MPS






13. Price level exceeds equilibrium price






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






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






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






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






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






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






20. Equilibrium real GDP exceeds potential GDP






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






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






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






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






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






26. When AD increases - real GDP __________.






27. Increase in AD






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






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






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






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






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






33. Decrease in AD






34. Real GDP and around potential GDP






35. Equilibrium real GDP is below potential GDP






36. Economic growth






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






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






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






40. When AD increases - the price level ________.






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






42. Relationship between saving and disposable income






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






44. Economic slowdown






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






46. 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