Test your basic knowledge |

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






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






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






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






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






6. Most economic theory is based on this






7. The larger the MPC - the ______ the multiplier






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






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






10. What changes government expenditure






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






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






13. Dictates rises and falls in consumption expenditure






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






15. Factors that change domestic imports






16. Sizes of MPS and multiplier






17. Savings in circular flow diagram is...






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






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






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






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






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






23. 'Supply creates its own demand.'

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






25. The average tax rate rises with GDP






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






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






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






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






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


31. Appropriate changes in government expenditures that occur naturally






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






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






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






35. Equation for MPC out of real GDP






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






37. A deficit that arises out of a recession






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






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






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






41. The purchase of foreign goods or services






42. According to Keynesian theory - this is horizontal






43. Real GDP - net taxes






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






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






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






47. Contractionary fiscal policy would be used to counteract _________






48. According to classical theory - this is vertical






49. Made up of autonomous expenditure and induced expenditure






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