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






2. Appropriate changes in government expenditures that occur naturally






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






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






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






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






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






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






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






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






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






12. Sizes of MPS and multiplier






13. Dictates rises and falls in consumption expenditure






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






15. The purchase of foreign goods or services






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






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






18. 'Supply creates its own demand.'






19. A deficit that persists during full employment






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






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






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






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






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






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






26. The larger the MPC - the ______ the multiplier






27. Factors that change domestic imports






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






29. Made up of autonomous expenditure and induced expenditure






30. According to classical theory - this is vertical






31. Real GDP - net taxes






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






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






34. What changes government expenditure






35. Savings in circular flow diagram is...






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






37. Two factors that influence or change investment plans






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






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






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






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






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






43. Contractionary fiscal policy would be used to counteract _________






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






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






46. According to Keynesian theory - this is horizontal






47. A deficit that arises out of a recession






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






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






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