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






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






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






5. Contractionary fiscal policy would be used to counteract _________






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






7. Factors that change domestic imports






8. The average tax rate rises with GDP






9. What changes government expenditure






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






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






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






13. Appropriate changes in government expenditures that occur naturally






14. 'Supply creates its own demand.'


15. According to classical theory - this is vertical






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






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






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






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






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






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






22. Made up of autonomous expenditure and induced expenditure






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






24. The purchase of foreign goods or services






25. Savings in circular flow diagram is...






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






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


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






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






30. A deficit that persists during full employment






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






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






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






34. Sizes of MPS and multiplier






35. Equation for MPC out of real GDP






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






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






38. The larger the MPC - the ______ the multiplier






39. Real GDP - net taxes






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






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






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






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






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






45. A deficit that arises out of a recession






46. Most economic theory is based on this






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






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






49. According to Keynesian theory - this is horizontal






50. Dictates rises and falls in consumption expenditure