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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. Slopes downward






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






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






4. Price level exceeds equilibrium price






5. Decrease in AD






6. Increase in AD






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






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






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






10. Economic growth






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






12. Potential GDP






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






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






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






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






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






18. Real GDP and around potential GDP






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






20. When AD increases - the price level ________.






21. Equilibrium real GDP exceeds potential GDP






22. MPC






23. Increase in long-term growth






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






25. When AD increases - real GDP __________.






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






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






28. Relationship between consumption expenditure and disposable income






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






30. MPC + MPS






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






32. Economic slowdown






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






34. 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






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






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






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






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






39. 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.






40. Relationship between saving and disposable income






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






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






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






44. Equilibrium real GDP is below potential GDP






45. 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






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