Test your basic knowledge |

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. MPC






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






3. When AD increases - the price level ________.






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






5. Relationship between saving and disposable income






6. Potential GDP






7. MPC + MPS






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






9. Increase in AD






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






11. Real GDP and around potential GDP






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






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






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






15. Economic slowdown






16. Economic growth






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






18. Equilibrium real GDP is below potential GDP






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






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






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






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






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






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






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






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






27. Equilibrium real GDP exceeds potential GDP






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






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






30. Increase in long-term growth






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






32. Decrease in AD






33. 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






34. 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






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






36. Price level exceeds equilibrium price






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






38. Slopes downward






39. Relationship between consumption expenditure and disposable income






40. When AD increases - real GDP __________.






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






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






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






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






45. 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.






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