Test your basic knowledge |

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






2. Most economic theory is based on this






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






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






5. Made up of autonomous expenditure and induced expenditure






6. A deficit that arises out of a recession






7. According to classical theory - this is vertical






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






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






10. An increase in real GDP _________ imports






11. Expansionary fiscal policy would be used to counteract a _________






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






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






14. An increase in government expenditures or a decrease in taxes






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






16. Factors that change domestic imports






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






18. Dictates rises and falls in consumption expenditure






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






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






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






22. A deficit that persists during full employment






23. Appropriate changes in government expenditures that occur naturally






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






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






26. The purchase of foreign goods or services






27. Contractionary fiscal policy would be used to counteract _________






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






29. The average tax rate rises with GDP






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






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






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






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






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






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






36. The larger the MPC - the ______ the multiplier






37. According to Keynesian theory - this is horizontal






38. Sizes of MPS and multiplier






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






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






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






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






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






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






45. 'Supply creates its own demand.'






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






47. Real GDP - net taxes






48. Equation for MPC out of real GDP






49. Savings in circular flow diagram is...






50. Two factors that influence or change investment plans