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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. According to Keynesian theory - this is horizontal






2. A deficit that arises out of a recession






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






4. An increase in real GDP _________ imports






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






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






7. The larger the MPC - the ______ the multiplier






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






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






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






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






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






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






14. Savings in circular flow diagram is...






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






16. Two factors that influence or change investment plans






17. According to classical theory - this is vertical






18. Dictates rises and falls in consumption expenditure






19. Contractionary fiscal policy would be used to counteract _________






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






21. Made up of autonomous expenditure and induced expenditure






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






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






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






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






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






27. A deficit that persists during full employment






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






29. The average tax rate rises with GDP






30. Appropriate changes in government expenditures that occur naturally






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






32. Sizes of MPS and multiplier






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






34. What changes government expenditure






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






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






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






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






39. Real GDP - net taxes






40. Most economic theory is based on this






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






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






43. 'Supply creates its own demand.'


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






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


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






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






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






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






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