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






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






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






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






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






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






7. Price level exceeds equilibrium price






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






9. Increase in long-term growth






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






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






12. Relationship between saving and disposable income






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






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






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






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






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






18. Slopes downward






19. Equilibrium real GDP exceeds potential GDP






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






21. Economic growth






22. Equilibrium real GDP is below potential GDP






23. Relationship between consumption expenditure and disposable income






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






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






26. Decrease in AD






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






28. When AD increases - real GDP __________.






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






30. MPC + MPS






31. When AD increases - the price level ________.






32. 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.






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






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






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






36. Real GDP and around potential GDP






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






38. Potential GDP






39. Economic slowdown






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






41. Increase in AD






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. The value of consumption goods and services bought by households






44. MPC






45. 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






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