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






2. Most economic theory is based on this






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






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






5. According to classical theory - this is vertical






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






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






8. The average tax rate rises with GDP






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






10. What changes government expenditure






11. Equation for MPC out of real GDP






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






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






14. Contractionary fiscal policy would be used to counteract _________






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






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






17. Savings in circular flow diagram is...






18. Sizes of MPS and multiplier






19. An increase in real GDP _________ imports






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






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






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






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






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






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






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






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






28. According to Keynesian theory - this is horizontal






29. The larger the MPC - the ______ the multiplier






30. Two factors that influence or change investment plans






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






32. A deficit that arises out of a recession






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






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






35. 'Supply creates its own demand.'


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






37. Dictates rises and falls in consumption expenditure






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 purchase of foreign goods or services






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


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






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






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






44. Made up of autonomous expenditure and induced expenditure






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






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






47. Appropriate changes in government expenditures that occur naturally






48. A deficit that persists during full employment






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






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