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






2. MPC + MPS






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






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






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






6. MPC






7. 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.






8. Economic slowdown






9. Decrease in AD






10. 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






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






12. Equilibrium real GDP exceeds potential GDP






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






14. Potential GDP






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






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






17. Price level exceeds equilibrium price






18. When AD increases - real GDP __________.






19. Real GDP and around potential GDP






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






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






22. Relationship between saving and disposable income






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






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






25. Increase in AD






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






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






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






29. Slopes downward






30. Economic growth






31. Relationship between consumption expenditure and disposable income






32. 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






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






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






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






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






37. When AD increases - the price level ________.






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






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






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






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






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






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






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






45. Equilibrium real GDP is below potential GDP






46. Increase in long-term growth