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. A deficit that arises out of a recession






2. The purchase of foreign goods or services






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






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






5. Dictates rises and falls in consumption expenditure






6. Sizes of MPS and multiplier






7. According to classical theory - this is vertical






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






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






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






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






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






13. What changes government expenditure






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






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






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


17. Two factors that influence or change investment plans






18. Real GDP - net taxes






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






20. Equation for MPC out of real GDP






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






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






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






24. Factors that change domestic imports






25. 'Supply creates its own demand.'


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






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






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






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






30. Contractionary fiscal policy would be used to counteract _________






31. Made up of autonomous expenditure and induced expenditure






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






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






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






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






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






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






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






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






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






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






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






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






44. The average tax rate rises with GDP






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






46. The larger the MPC - the ______ the multiplier






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






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






49. Appropriate changes in government expenditures that occur naturally






50. Most economic theory is based on this