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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 change in savings divided by the change in disposable income






2. When AD increases - real GDP __________.






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






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






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






6. Real GDP and around potential GDP






7. 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






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






9. Increase in long-term growth






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






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






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






13. MPC






14. Potential GDP






15. Equilibrium real GDP exceeds potential GDP






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






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






18. Decrease in AD






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






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






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






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






23. 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.






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






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






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






27. Price level exceeds equilibrium price






28. Relationship between saving and disposable income






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






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






31. MPC + MPS






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






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






34. Relationship between consumption expenditure and disposable income






35. Economic slowdown






36. Equilibrium real GDP is below potential GDP






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






38. When AD increases - the price level ________.






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






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






41. Increase in AD






42. Economic growth






43. 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






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






45. Slopes downward






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