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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. Increase in AD






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






3. 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.






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






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






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






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






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






9. 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






10. MPC






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






12. Slopes downward






13. When AD increases - real GDP __________.






14. Decrease in AD






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






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






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






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






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






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






21. Equilibrium real GDP exceeds potential GDP






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






23. Economic slowdown






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






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






26. MPC + MPS






27. Economic growth






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






29. When AD increases - the price level ________.






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






31. Relationship between saving and disposable income






32. Equilibrium real GDP is below potential GDP






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






34. Price level exceeds equilibrium price






35. Relationship between consumption expenditure and disposable income






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






37. Increase in long-term growth






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






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






40. Potential GDP






41. Real GDP and around potential GDP






42. 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






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






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






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






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