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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. Sizes of MPS and multiplier






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






3. 'Supply creates its own demand.'


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






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






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






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






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






9. A deficit that arises out of a recession






10. The larger the MPC - the ______ the multiplier






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






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






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






14. Contractionary fiscal policy would be used to counteract _________






15. According to classical theory - this is vertical






16. Appropriate changes in government expenditures that occur naturally






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






18. An increase in real GDP _________ imports






19. Equation for MPC out of real GDP






20. A deficit that persists during full employment






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






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






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






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






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






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






27. Factors that change domestic imports






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






29. What changes government expenditure






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


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






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






33. The purchase of foreign goods or services






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






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






36. Two factors that influence or change investment plans






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






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






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






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






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






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






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






44. Dictates rises and falls in consumption expenditure






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






46. Real GDP - net taxes






47. Made up of autonomous expenditure and induced expenditure






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






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






50. Most economic theory is based on this