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






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






3. MPC






4. Increase in AD






5. 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






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






7. Potential GDP






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






9. Economic growth






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






11. When AD increases - the price level ________.






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






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






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






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






16. Real GDP and around potential GDP






17. Relationship between saving and disposable income






18. MPC + MPS






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






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






21. Price level exceeds equilibrium price






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






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






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






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






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






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






28. Economic slowdown






29. 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






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






32. Increase in long-term growth






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






34. Slopes downward






35. When AD increases - real GDP __________.






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






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






38. Decrease in AD






39. 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.






40. Equilibrium real GDP exceeds potential GDP






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






42. Relationship between consumption expenditure and disposable income






43. Equilibrium real GDP is below potential GDP






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






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






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