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






2. Equilibrium real GDP exceeds potential GDP






3. Increase in long-term growth






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






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






6. 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






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






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






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






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






11. Relationship between consumption expenditure and disposable income






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






13. Price level exceeds equilibrium price






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






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






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






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






20. Increase in AD






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






22. When AD increases - the price level ________.






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






24. Decrease in AD






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






26. Slopes downward






27. Relationship between saving and disposable income






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






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






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






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






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






33. Equilibrium real GDP is below potential GDP






34. Economic slowdown






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. Economic growth






37. Real GDP and around potential GDP






38. MPC + MPS






39. MPC






40. Potential GDP






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






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






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






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






45. When AD increases - real GDP __________.






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