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






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






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






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






6. MPC + MPS






7. Slopes downward






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






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






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






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






12. Potential GDP






13. When AD increases - real GDP __________.






14. Equilibrium real GDP is below potential GDP






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






16. MPC






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






18. Price level exceeds equilibrium price






19. Economic slowdown






20. Increase in long-term growth






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






22. 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.






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






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






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






26. Relationship between consumption expenditure and disposable income






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






28. Economic growth






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






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






31. Equilibrium real GDP exceeds potential GDP






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






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






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






35. Real GDP and around potential GDP






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






37. Increase in AD






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






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






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






41. 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






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






43. Decrease in AD






44. Relationship between saving and disposable income






45. When AD increases - the price level ________.






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