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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 point on a consumption function where the consumption line intersects the 45 degree line






2. 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.






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






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






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






6. Increase in AD






7. When AD increases - the price level ________.






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






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






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






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






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






13. Potential GDP






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






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






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






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






18. Relationship between saving and disposable income






19. Increase in long-term growth






20. MPC + MPS






21. Real GDP and around potential GDP






22. 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






23. Equilibrium real GDP exceeds potential GDP






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






25. 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






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






27. MPC






28. Slopes downward






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






30. Price level exceeds equilibrium price






31. Relationship between consumption expenditure and disposable income






32. Economic slowdown






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






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






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






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






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






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






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






40. Economic growth






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






42. When AD increases - real GDP __________.






43. Decrease in AD






44. Equilibrium real GDP is below potential GDP






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






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