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






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






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






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






6. Relationship between saving and disposable income






7. Increase in long-term growth






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






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






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






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






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






13. MPC






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






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






16. Price level exceeds equilibrium price






17. MPC + MPS






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






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






20. When AD increases - real GDP __________.






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






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






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






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






25. When AD increases - the price level ________.






26. Economic slowdown






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






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






29. Slopes downward






30. Real GDP and around potential GDP






31. Increase in AD






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






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






34. Decrease in AD






35. Potential GDP






36. 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.






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






38. Relationship between consumption expenditure and disposable income






39. Equilibrium real GDP exceeds potential GDP






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






41. Equilibrium real GDP is below potential GDP






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






43. 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






44. Economic growth






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






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