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






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






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






4. Decrease in AD






5. When AD increases - the price level ________.






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






7. 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.






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






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






10. Increase in AD






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






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






13. 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






14. MPC






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






16. Relationship between saving and disposable income






17. 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






18. Real GDP and around potential GDP






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






20. Equilibrium real GDP is below potential GDP






21. Equilibrium real GDP exceeds potential GDP






22. Relationship between consumption expenditure and disposable income






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






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






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






26. Increase in long-term growth






27. Slopes downward






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






29. Economic growth






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






31. MPC + MPS






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






33. Economic slowdown






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






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






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






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






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






39. Price level exceeds equilibrium price






40. Potential GDP






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






42. When AD increases - real GDP __________.






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






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






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






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