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






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






3. Real GDP - net taxes






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






5. A deficit that persists during full employment






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






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






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






9. According to classical theory - this is vertical






10. Savings in circular flow diagram is...






11. Dictates rises and falls in consumption expenditure






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






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






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






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






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






17. The average tax rate rises with GDP






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






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






20. An increase in real GDP _________ imports






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






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






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






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






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






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






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






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






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






30. 'Supply creates its own demand.'






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






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






33. Made up of autonomous expenditure and induced expenditure






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






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






36. A deficit that arises out of a recession






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






38. Factors that change domestic imports






39. According to Keynesian theory - this is horizontal






40. Appropriate changes in government expenditures that occur naturally






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






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






43. Two factors that influence or change investment plans






44. Sizes of MPS and multiplier






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






46. Most economic theory is based on this






47. Equation for MPC out of real GDP






48. The purchase of foreign goods or services






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






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