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






2. Decrease in AD






3. Relationship between consumption expenditure and disposable income






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






5. Economic slowdown






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






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






8. Relationship between saving and disposable income






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






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






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






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






13. Real GDP and around potential GDP






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






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






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






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






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






19. 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






20. Increase in long-term growth






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






22. Potential GDP






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






24. Slopes downward






25. When AD increases - the price level ________.






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






27. MPC + MPS






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






29. Equilibrium real GDP exceeds potential GDP






30. 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.






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






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. Equilibrium real GDP is below potential GDP






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






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






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






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






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






39. Increase in AD






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






41. When AD increases - real GDP __________.






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






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






44. MPC






45. Price level exceeds equilibrium price






46. Economic growth