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






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






3. MPC + MPS






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






5. 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.






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






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






8. When AD increases - the price level ________.






9. Price level exceeds equilibrium price






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






11. Equilibrium real GDP is below potential GDP






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






13. Slopes downward






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






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






16. MPC






17. Real GDP and around potential GDP






18. 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






19. Increase in long-term growth






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






21. Potential GDP






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






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






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






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






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






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






28. Relationship between consumption expenditure and disposable income






29. Economic growth






30. Increase in AD






31. Economic slowdown






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






33. When AD increases - real GDP __________.






34. 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






35. Decrease in AD






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






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






38. Relationship between saving and disposable income






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






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






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






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






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






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






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






46. Equilibrium real GDP exceeds potential GDP