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






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






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






4. The average tax rate rises with GDP






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






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






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






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






9. Made up of autonomous expenditure and induced expenditure






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






11. According to classical theory - this is vertical






12. An increase in real GDP _________ imports






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






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






15. What changes government expenditure






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






17. Contractionary fiscal policy would be used to counteract _________






18. A deficit that persists during full employment






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






20. Appropriate changes in government expenditures that occur naturally






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






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






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






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






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






26. Savings in circular flow diagram is...






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






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






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






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






31. Two factors that influence or change investment plans






32. 'Supply creates its own demand.'


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






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






35. According to Keynesian theory - this is horizontal






36. The purchase of foreign goods or services






37. Factors that change domestic imports






38. Most economic theory is based on this






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






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






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






42. Dictates rises and falls in consumption expenditure






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






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






45. Sizes of MPS and multiplier






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


47. A deficit that arises out of a recession






48. Real GDP - net taxes






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






50. The larger the MPC - the ______ the multiplier