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






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






3. Potential GDP






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






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






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






7. Relationship between saving and disposable income






8. When AD increases - the price level ________.






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






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






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






12. Equilibrium real GDP is below potential GDP






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






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






15. Decrease in AD






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






17. Equilibrium real GDP exceeds potential GDP






18. Economic slowdown






19. Increase in long-term growth






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






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






22. Slopes downward






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






24. MPC






25. When AD increases - real GDP __________.






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






27. 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






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






29. Relationship between consumption expenditure and disposable income






30. MPC + MPS






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






32. Economic growth






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






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






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






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






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






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






39. Increase in AD






40. Real GDP and around potential GDP






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






42. 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.






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






46. Price level exceeds equilibrium price