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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. Equilibrium real GDP is below potential GDP






2. 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.






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






4. Economic slowdown






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






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






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






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






9. Equilibrium real GDP exceeds potential GDP






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






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






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






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






14. Economic growth






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






16. Increase in long-term growth






17. Potential GDP






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






19. When AD increases - real GDP __________.






20. MPC






21. MPC + MPS






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






23. Slopes downward






24. Relationship between saving and disposable income






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






26. Decrease in AD






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






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






29. 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






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






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






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






33. Relationship between consumption expenditure and disposable income






34. When AD increases - the price level ________.






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






36. 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






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






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






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






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






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






42. Real GDP and around potential GDP






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






44. Price level exceeds equilibrium price






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






46. Increase in AD