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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. Indicates simultaneous change in price level and money wage rate






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






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






4. 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.






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






6. Decrease in AD






7. Relationship between saving and disposable income






8. Potential GDP






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






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






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






12. MPC






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






14. 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






15. Price level exceeds equilibrium price






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






17. When AD increases - the price level ________.






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






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






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






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






22. Equilibrium real GDP is below potential GDP






23. Increase in long-term growth






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






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






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






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






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






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






30. Economic growth






31. Economic slowdown






32. Increase in AD






33. 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






34. Slopes downward






35. When AD increases - real GDP __________.






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






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






38. Relationship between consumption expenditure and disposable income






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






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






41. Equilibrium real GDP exceeds potential GDP






42. Real GDP and around potential GDP






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






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






45. MPC + MPS






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