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






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






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






4. A deficit that arises out of a recession






5. 'Supply creates its own demand.'


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






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






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






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


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






11. Most economic theory is based on this






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






13. According to Keynesian theory - this is horizontal






14. A deficit that persists during full employment






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






16. The average tax rate rises with GDP






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






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






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






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






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






22. Equation for MPC out of real GDP






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






24. What changes government expenditure






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






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






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






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






29. An increase in real GDP _________ imports






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






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






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






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






34. Sizes of MPS and multiplier






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






36. Contractionary fiscal policy would be used to counteract _________






37. The purchase of foreign goods or services






38. Real GDP - net taxes






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






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






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






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






43. Two factors that influence or change investment plans






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






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






46. Savings in circular flow diagram is...






47. According to classical theory - this is vertical






48. Made up of autonomous expenditure and induced expenditure






49. Dictates rises and falls in consumption expenditure






50. Appropriate changes in government expenditures that occur naturally