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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 ratio of change in consumption to change in income






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






3. Relationship between consumption expenditure and disposable income






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






5. Economic slowdown






6. Increase in AD






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






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






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






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






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






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






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






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






15. MPC + MPS






16. Price level exceeds equilibrium price






17. When AD increases - the price level ________.






18. 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






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






20. 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






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






22. Equilibrium real GDP exceeds potential GDP






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






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






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






26. When AD increases - real GDP __________.






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






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






29. Economic growth






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






31. Relationship between saving and disposable income






32. MPC






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






34. Increase in long-term growth






35. Equilibrium real GDP is below potential GDP






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






37. Potential GDP






38. Slopes downward






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






40. Real GDP and around potential GDP






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






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






43. Decrease in AD






44. 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.






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






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