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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. Factors that change domestic imports






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






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






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






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






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






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






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






9. A deficit that persists during full employment






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






11. 'Supply creates its own demand.'


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






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






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






15. Contractionary fiscal policy would be used to counteract _________






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






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






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






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






20. Sizes of MPS and multiplier






21. What changes government expenditure






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






23. The purchase of foreign goods or services






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


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






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






27. Two factors that influence or change investment plans






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






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






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






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






32. Appropriate changes in government expenditures that occur naturally






33. The larger the MPC - the ______ the multiplier






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






35. Savings in circular flow diagram is...






36. Equation for MPC out of real GDP






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






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






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






40. According to classical theory - this is vertical






41. Real GDP - net taxes






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






43. A deficit that arises out of a recession






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






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






46. Most economic theory is based on this






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






48. An increase in real GDP _________ imports






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






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