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CLEP Macroeconomics: Measurement Of Economic Performance - 2

Subjects : clep, economics
Instructions:
  • Answer 50 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. Real GDP - net taxes






2. The amount by which a change in aggregate expenditure is multiplied to determine the change in equilibrium expenditure and real GDP






3. Made up of autonomous expenditure and induced expenditure






4. Slope of savings function is equal to...






5. The part of aggregate planned expenditure that does change when real GDP changes






6. The level of aggregate expenditure when aggregate planned expenditure equals real GDP






7. Demand side effects are large; supply side - small






8. Savings in circular flow diagram is...






9. A deficit that arises out of a recession






10. Inventories remain at their target levels when....






11. According to classical theory - an increase in AD increases the price level but not the level of...






12. A deficit that persists during full employment






13. Goods or services produced in a given nation and sold to customers in other nations






14. While investment - government spending - and exports remain constant during changes in the GDP - this kind of expenditure changes with the level of GDP






15. A decrease in government expenditures or an increase in taxes






16. The average tax rate rises with GDP






17. Lists the level of aggregate planned expenditure at each level of real GDP






18. Changes in real GDP DO or DO NOT change domestic exports.






19. A change in equilibrium expenditure divided by a change in aggregate expenditure






20. An increase in public debt will have little or no effect on real output or employment because people will choose to save more money






21. The magnitude of the multiplier depends on the ___ _____






22. (1) Pure competition; (2) Flexible wages and prices; (3) Self-interested motives; (4) People cannot be fooled by money illusions






23. The part of aggregate planned expenditure that does not change when real GDP changes






24. The time of production during which there are only essentially variable costs






25. The time of production during which there are fixed and variable costs






26. Appropriate changes in government expenditures that occur naturally






27. Opposite of traditional view; supply side effects are dominant






28. A capitalist economy does not tend to employ its resources fully


29. According to classical theory - demand for this creates unemployment






30. An increase in real GDP _________ imports






31. C + I + G + N - import function






32. According to Keynesian theory - this is horizontal






33. Changes in real GDP DO or DO NOT change investment plans.






34. Contractionary fiscal policy would be used to counteract _________






35. The capitalistic economy would tend to employ its resources fully






36. What changes government expenditure






37. Two factors that influence or change investment plans






38. As real GDP increases - disposable income increases - but by ___ than the increase in real GDP because net taxes also increase.






39. Fiscal Policy changes that increase or decrease equilibrium expenditure will increase or decrease _________ ________.






40. If the MPC is 0.65 - what is the multiplier?






41. Claims that expansionary fiscal policy will increase interest rates and reduce investment






42. Most economic theory is based on this






43. Sizes of MPS and multiplier






44. Changes in real GDP DO or DO NOT change government expenditure.






45. Change in imports divided by the change in real GDP






46. Factors that change domestic imports






47. Dictates rises and falls in consumption expenditure






48. The larger the MPC - the ______ the multiplier






49. Spending for the production and accumulation of capital goods and additions to inventory






50. Equation for MPC out of real GDP