Test your basic knowledge |

CLEP Macroeconomics: Monetary And Fiscal Policy

Subjects : clep, economics
Instructions:
  • Answer 48 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. The use of monetary policy by the central bank to cushion the blow of aggregate supply shocks






2. Relationship between inflation and unemployment






3. Fundamental equation of monetarism






4. New Classical Economists assert that households and firms pursue economics for their own ____-_________






5. According to RET - cost of this depends on whether or not it is expected






6. The economy may stagnate in the absence of proper work - saving and investment incentives






7. Keynesian economics believes that AD is ________






8. Inflation that results from an initial increase in aggregate demand






9. According to Keynesian economists - this could pull the economy out of a recession or depression






10. According to classical economics - AD curve is stable if....






11. Large annual debts create this - promoting imports and stifling exports






12. This kind of fiscal policy is necessary for a balanced budget - would tend to magnify the changes in the economy - and make the business cycle more pronounced






13. Modern fiscal policy favors this kind of budgets for the purpose of economic stabilization






14. According to Keynesian theory - AS curve is __________






15. PQ or price level times physical volume of goods and services - is equal to...






16. Balancing the budget is secondary to ensuring that the economy runs at a non-inflationary full employment level






17. This consequence of national debt may lead to inflation






18. Relation between inflation and unemployment






19. Three ways the government could reduce deficit: increase/decrease (1) taxes - (2) spending - and (3) interest rates






20. Rational Expectations Theorists






21. _____ tend to alter the behaviour of the public when imposed by the government






22. A sudden and drastic change in the supply curve






23. Taxes and transfer payments that stabilize GDP without requiring policymakers to take explicit actions






24. Encourage foreign investment






25. Feeds on interest payments & limits a government's ability to use discretionary stabilization policies






26. Keynesian economists believe that monetary policy is a ____ tool for economic stability






27. The competition in the marketplace provides economic stability






28. Classical economists believe that the AS curve is _______






29. Money is at the root of aggregate demand






30. The government must go to the money markets and compete with the private sector for funds






31. Which kind of inflation avoids some of the costs?






32. Inflation accompanied by simultaneous increases in prices and unemployment






33. _________ will prefer to consume than to save






34. Basic Keynesian economic equation






35. Inflation that results from an initial increase in costs






36. NCE/RET imply that the aggregate supply curve is _______






37. Accumulation of government deficits






38. ______ ______ is most important in a monetarist's view for determining output - price and employment levels






39. Money supply - velocity - price level - physical volume of goods and services






40. One source of public debt






41. Believe that markets are highly competitive and adjust prices quickly to changes in supply and demand






42. Amount spent = amount received - which is equation of exchange






43. Prices adjust in a natural way to bring the markets for goods and labor into equilibrium






44. In the short-run prices and wages are downwardly inflexible






45. This kind of budget exerts counter-cyclical pressure on the economy - balancing the budgets in the bad times with the surpluses of the good times






46. The price level rises and money loses value






47. The budget must be balanced each year






48. Using taxes and spending to influence the level of GDP in the short run







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests