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

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

3. Real GDP - net taxes

4. According to Keynesian theory - this is horizontal

5. Made up of autonomous expenditure and induced expenditure

6. Appropriate changes in government expenditures that occur naturally

7. Sizes of MPS and multiplier

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

9. Equation for MPC out of real GDP

10. Dictates rises and falls in consumption expenditure

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

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

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

14. Two factors that influence or change investment plans

15. According to classical theory - this is vertical

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

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

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

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

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

21. What changes government expenditure

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

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

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

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

26. A deficit that arises out of a recession

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

28. The larger the MPC - the ______ the multiplier

29. When a fiscal expansion occurs at Potential GDP the Short-Run Aggregate Supply curve (SAS) shifts _____.

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

31. An increase in real GDP _________ imports

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

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

34. The average tax rate rises with GDP

35. A deficit that persists during full employment

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

37. Factors that change domestic imports

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

39. 'Supply creates its own demand.'

40. Savings in circular flow diagram is...

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

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

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

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

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

46. Most economic theory is based on this

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

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

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

50. The purchase of foreign goods or services