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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. Savings in circular flow diagram is...






2. What changes government expenditure






3. A deficit that persists during full employment






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






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






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






7. Contractionary fiscal policy would be used to counteract _________






8. Most economic theory is based on this






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






10. 'Supply creates its own demand.'


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






12. Factors that change domestic imports






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






14. A deficit that arises out of a recession






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






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






17. The purchase of foreign goods or services






18. The larger the MPC - the ______ the multiplier






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






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






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






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






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






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






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






26. Two factors that influence or change investment plans






27. Real GDP - net taxes






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






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






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






31. Sizes of MPS and multiplier






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






33. Dictates rises and falls in consumption expenditure






34. An increase in real GDP _________ imports






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






36. According to classical theory - this is vertical






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






38. Equation for MPC out of real GDP






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






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






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






42. According to Keynesian theory - this is horizontal






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






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






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






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






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






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


49. Appropriate changes in government expenditures that occur naturally






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