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






2. Equilibrium real GDP is below potential GDP






3. 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






4. Economic growth






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






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






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






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






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






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






11. Relationship between saving and disposable income






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






13. Decrease in AD






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






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






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






17. Economic slowdown






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






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






20. Potential GDP






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






22. Real GDP and around potential GDP






23. Increase in AD






24. Slopes downward






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






26. Relationship between consumption expenditure and disposable income






27. MPC + MPS






28. MPC






29. When AD increases - the price level ________.






30. Increase in long-term growth






31. 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






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






33. Price level exceeds equilibrium price






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






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






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






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






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






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






40. Equilibrium real GDP exceeds potential GDP






41. 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.






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






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






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






45. When AD increases - real GDP __________.






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






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