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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. Equilibrium real GDP exceeds potential GDP






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






3. Economic growth






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






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






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






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






8. 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






9. Increase in AD






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






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






12. Economic slowdown






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






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






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






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






17. Price level exceeds equilibrium price






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






19. Relationship between saving and disposable income






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






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






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






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






24. MPC






25. Slopes downward






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






27. When AD increases - the price level ________.






28. Potential GDP






29. Decrease in AD






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






31. MPC + MPS






32. Real GDP and around potential GDP






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






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






36. Increase in long-term growth






37. 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.






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






39. When AD increases - real GDP __________.






40. Equilibrium real GDP is below potential GDP






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






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






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






45. Relationship between consumption expenditure and disposable income






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