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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. Increase in long-term growth






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






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






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






5. Relationship between consumption expenditure and disposable income






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






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






8. Equilibrium real GDP is below potential GDP






9. Equilibrium real GDP exceeds potential GDP






10. Decrease in AD






11. Price level exceeds equilibrium price






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






13. Economic growth






14. Potential GDP






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






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






17. Increase in AD






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






20. MPC + MPS






21. Slopes downward






22. Relationship between saving and disposable income






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






24. Real GDP and around potential GDP






25. 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.






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






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






28. When AD increases - the price level ________.






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






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






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






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






33. When AD increases - real GDP __________.






34. MPC






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






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






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






38. Economic slowdown






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






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






42. 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






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






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






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






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