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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. Increase in long-term growth






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






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






4. Slopes downward






5. When AD increases - the price level ________.






6. Economic slowdown






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






9. MPC






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






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






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






13. Equilibrium real GDP exceeds potential GDP






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






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






16. Decrease in AD






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






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






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






20. Price level exceeds equilibrium price






21. 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






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






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






24. Economic growth






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






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






27. Real GDP and around potential GDP






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






29. Increase in AD






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






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






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






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






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






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






36. Relationship between consumption expenditure and disposable income






37. When AD increases - real GDP __________.






38. 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






39. Potential GDP






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






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






42. Equilibrium real GDP is below potential GDP






43. Relationship between saving and disposable income






44. MPC + MPS






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






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