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CLEP Macroeconomics: Measurement Of Economic Performance - 2

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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