SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
CLEP Macroeconomics: National Income And Price Determination
Start Test
Study First
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. Tendency for increases in the price level to lower the purchasing power of assets of financial assets and reduce total spending in the economy
substitution effect
increase in potential GDP
wealth effect
inflationary gap
2. When AD increases - the price level ________.
break even income level
vertical LAS
decrease
increases
3. The quantity of real GDP demanded equals the quantity of real GDP supplied
short-run equilibrium
increases
equation for MPS
marginal propensity to save (MPS)
4. People change consumption preferences daily between domestic goods and services and foreign goods and services
substitution effect
shift to left
fiscal policy
inflationary gap
5. Indicates simultaneous change in price level and money wage rate
consumption function
aggregate demand
long-run aggregate supply
movement along vertical LAS
6. Economic slowdown
consumption expenditure
leftward shift of SAS
SAS
long-run aggregate supply
7. Relationship between consumption expenditure and disposable income
leftward shift of SAS
increases
consumption function
movement along vertical LAS
8. Disposable Income (DI) = Consumption(C) + Saving Consumption (S)
equation for MPS
equation for saving function
marginal propensity to consume (MPC)
short-run aggregate supply
9. Real GDP and around potential GDP
surplus
substitution effect
aggregate demand
fluctuation in AD brings fluctuation in...
10. The point on a consumption function where the consumption line intersects the 45 degree line
increases
break even income level
slope of consumption function is equal to...
aggregate supply
11. Price level exceeds equilibrium price
fiscal policy
right
vertical LAS
surplus
12. The government's attempt to influence the economy by setting and changing taxes - transfer payments - and expenditures on goods and services
decrease
fiscal policy
increases
recessionary gap
13. Equilibrium real GDP exceeds potential GDP
saving function
aggregate demand
consumption expenditure
inflationary gap
14. When potential GDP increases - both LAS and SAS curves shift _____.
short-run aggregate supply
short-run equilibrium
factors that cause shifts in AD curve
right
15. A rise in both the price level and the money wage rate that maintains full employment brings a movement along the ____ curve.
consumption function
LAS
saving function
increase in potential GDP
16. The ratio of change in consumption to change in income
consumption function
marginal propensity to consume (MPC)
movement along vertical LAS
slope of consumption function is equal to...
17. Increase in AD
shift to right
SAS
aggregate demand
equation for MPS
18. MPC + MPS
recessionary gap
1
movement along vertical LAS
equation for MPC
19. A non-price related change causes a _____ in the demand curve
aggregate quantity
shift
slope of consumption function is equal to...
long-run aggregate supply
20. Increase in long-term growth
equation for MPC
vertical LAS
increase in potential GDP
equation for saving function
21. Price levels rise due to a decrease in Short Run Aggregate Supply
shift to right
slope of consumption function is equal to...
long-run aggregate supply
stagflation
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
right-ward shift of SAS
consumption function
long-run aggregate supply
equation for MPS
23. 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
short-run aggregate supply
fiscal policy
LAS
aggregate demand
24. Relationship between the quantity of real GDP demanded and the price level
aggregate quantity
inflation is a result of...
slope of consumption function is equal to...
aggregate demand
25. The relationship between the quantity of real GDP supplied and the price level
stagflation
surplus
fiscal policy
aggregate supply
26. Relationship between saving and disposable income
consumption expenditure
saving function
movement along vertical LAS
break even income level
27. Increased AD brings a(n) ___________ in SAS.
fluctuation in AD brings fluctuation in...
left
decrease
aggregate supply
28. The fraction of a change in disposable income that is saved
saving function
marginal propensity to save (MPS)
equation for MPS
break even income level
29. Job expectations - fiscal or monetary policy - world economy - inflation - profits
equation for saving function
short-run equilibrium
increases
factors that cause shifts in AD curve
30. A persistent increase in aggregate demand that exceeds the increase in potential GDP
1
fluctuation in AD brings fluctuation in...
right-ward shift of SAS
inflation is a result of...
31. A rise in resource costs (labor - fuel - material - etc) will _______ SAS.
consumption expenditure
aggregate supply
decrease
saving function
32. The change in savings divided by the change in disposable income
consumption expenditure
saving function
equation for MPS
stagflation
33. Equilibrium real GDP is below potential GDP
recessionary gap
break even income level
left
monetary policy
34. When Short Run Aggregate Supply decreases - Real GDP falls below Potential GDP and the price level _________.
movement along vertical LAS
aggregate quantity
short-run aggregate supply
increases
35. Potential GDP
vertical LAS
short-run equilibrium
leftward shift of SAS
movement along vertical LAS
36. Slopes downward
AD curve
equation for MPS
increases
shift
37. Economic growth
equation for MPS
stagflation
right-ward shift of SAS
break even income level
38. Decrease in AD
consumption function
break even income level
fiscal policy
shift to left
39. When the money wage rate rises - the SAS curve shifts ____ but the LAS curve remains unchanged.
left
stagflation
increases
short-run equilibrium
40. Sum of the quantities of all the final goods produced in the economy
aggregate quantity
wealth effect
factors that cause shifts in AD curve
decrease
41. 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.
inflation is a result of...
marginal propensity to save (MPS)
vertical LAS
SAS
42. The value of consumption goods and services bought by households
consumption expenditure
equation for saving function
marginal propensity to consume (MPC)
wealth effect
43. Change in consumption expenditure divided by the change in disposable income
increases
consumption expenditure
aggregate supply
equation for MPC
44. When AD increases - real GDP __________.
substitution effect
increases
slope of consumption function is equal to...
surplus
45. MPC
slope of consumption function is equal to...
inflationary gap
break even income level
shift
46. The government's attempt to influence the economy by setting and changing interest rates - the exchange rate - and the quantity of money
monetary policy
inflation is a result of...
vertical LAS
right