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






2. A deficit that persists during full employment






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






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

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5. Real GDP - net taxes






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






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






8. Sizes of MPS and multiplier






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






10. The larger the MPC - the ______ the multiplier






11. 'Supply creates its own demand.'

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






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






14. According to Keynesian theory - this is horizontal






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






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






17. The average tax rate rises with GDP






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






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






20. Most economic theory is based on this






21. Made up of autonomous expenditure and induced expenditure






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






23. A deficit that arises out of a recession






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






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






26. Factors that change domestic imports






27. Dictates rises and falls in consumption expenditure






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






29. What changes government expenditure






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






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






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






33. Savings in circular flow diagram is...






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






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






36. According to classical theory - this is vertical






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






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






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






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






41. Equation for MPC out of real GDP






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






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






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






45. An increase in real GDP _________ imports






46. Appropriate changes in government expenditures that occur naturally






47. The purchase of foreign goods or services






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






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






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