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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. Economic slowdown






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






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






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






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






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






7. 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






8. When AD increases - the price level ________.






9. Increase in long-term growth






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






11. 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






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






13. Potential GDP






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






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






16. Relationship between saving and disposable income






17. Increase in AD






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






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






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






21. MPC + MPS






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






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






24. 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.






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






26. Real GDP and around potential GDP






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






28. Economic growth






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






30. MPC






31. Price level exceeds equilibrium price






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






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






34. Equilibrium real GDP is below potential GDP






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






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






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






38. Equilibrium real GDP exceeds potential GDP






39. Slopes downward






40. Relationship between consumption expenditure and disposable income






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






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






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






44. When AD increases - real GDP __________.






45. Decrease in AD






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