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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. Most economic theory is based on this






2. What changes government expenditure






3. 'Supply creates its own demand.'


4. Two factors that influence or change investment plans






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






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






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






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






9. Factors that change domestic imports






10. Dictates rises and falls in consumption expenditure






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


12. The purchase of foreign goods or services






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






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






15. According to classical theory - this is vertical






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






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






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






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






20. Contractionary fiscal policy would be used to counteract _________






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






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






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






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






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






26. An increase in real GDP _________ imports






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






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






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






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






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






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






33. Equation for MPC out of real GDP






34. Sizes of MPS and multiplier






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






36. Real GDP - net taxes






37. A deficit that arises out of a recession






38. According to Keynesian theory - this is horizontal






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






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






41. A deficit that persists during full employment






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






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






44. Savings in circular flow diagram is...






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






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






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






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






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






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