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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. 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






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






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






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






5. 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.






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






7. Real GDP and around potential GDP






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






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






10. Equilibrium real GDP exceeds potential GDP






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






12. Increase in AD






13. Economic growth






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. Relationship between consumption expenditure and disposable income






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






17. Economic slowdown






18. MPC + MPS






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






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






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






22. Potential GDP






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






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






25. When AD increases - real GDP __________.






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






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






30. Slopes downward






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






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






33. Decrease in AD






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






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






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






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






38. Relationship between saving and disposable income






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






40. MPC






41. Equilibrium real GDP is below potential GDP






42. When AD increases - the price level ________.






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






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






45. Increase in long-term growth






46. Price level exceeds equilibrium price