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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. Price level exceeds equilibrium price






2. Equilibrium real GDP exceeds potential GDP






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






4. MPC






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






6. Increase in long-term growth






7. When AD increases - real GDP __________.






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






9. 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.






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






11. MPC + MPS






12. Economic growth






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






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






15. Increase in AD






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






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






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






19. Equilibrium real GDP is below potential GDP






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






21. Relationship between consumption expenditure and disposable income






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






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






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






25. Economic slowdown






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






27. Potential GDP






28. Decrease in AD






29. Relationship between saving and disposable income






30. When AD increases - the price level ________.






31. Slopes downward






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






33. 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






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






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






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






37. Real GDP and around potential GDP






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






39. 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






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






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






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






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






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






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






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