Test your basic knowledge |

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. Potential GDP






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






3. Equilibrium real GDP is below potential GDP






4. Increase in AD






5. Price level exceeds equilibrium price






6. Decrease in AD






7. Slopes downward






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






9. Equilibrium real GDP exceeds potential GDP






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






11. 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.






12. Relationship between consumption expenditure and disposable income






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






14. Economic slowdown






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






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






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






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






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






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






21. Relationship between saving and disposable income






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






23. 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






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






25. When AD increases - the price level ________.






26. MPC






27. MPC + MPS






28. Real GDP and around potential GDP






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






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






31. Increase in long-term growth






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






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






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






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






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






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






38. When AD increases - real GDP __________.






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






40. 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






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






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






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






44. Economic growth






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






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