Test your basic knowledge |

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






2. Equilibrium real GDP is below potential GDP






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






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






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






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






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






8. Relationship between saving and disposable income






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






10. Real GDP and around potential GDP






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






12. MPC






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






14. Equilibrium real GDP exceeds potential GDP






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






16. 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






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






18. Increase in AD






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






20. Economic growth






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






22. Increase in long-term growth






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






24. Slopes downward






25. When AD increases - the price level ________.






26. Price level exceeds equilibrium price






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






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






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






30. Economic slowdown






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






32. 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






33. Relationship between consumption expenditure and disposable income






34. Decrease in AD






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






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






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






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






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






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






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






43. When AD increases - real GDP __________.






44. MPC + MPS






45. Potential GDP






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