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. Equilibrium real GDP is below potential GDP






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






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






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






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






6. 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






7. Decrease in AD






8. Real GDP and around potential GDP






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






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






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






12. When AD increases - the price level ________.






13. Economic slowdown






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






15. 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






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






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






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






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






20. Increase in long-term growth






21. Equilibrium real GDP exceeds potential GDP






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






23. Relationship between saving and disposable income






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






25. Potential GDP






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






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






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






29. Relationship between consumption expenditure and disposable income






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






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






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






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






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






35. Price level exceeds equilibrium price






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






37. MPC






38. MPC + MPS






39. Increase in AD






40. When AD increases - real GDP __________.






41. Slopes downward






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






43. 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.






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






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






46. Economic growth