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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. Savings in circular flow diagram is...






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






3. Most economic theory is based on this






4. Sizes of MPS and multiplier






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






6. Two factors that influence or change investment plans






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






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






9. An increase in real GDP _________ imports






10. Factors that change domestic imports






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






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






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






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






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






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






17. According to classical theory - this is vertical






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






19. A deficit that arises out of a recession






20. Real GDP - net taxes






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






22. According to Keynesian theory - this is horizontal






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






24. What changes government expenditure






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






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






27. Equation for MPC out of real GDP






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






29. A deficit that persists during full employment






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






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






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






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


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






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






36. The larger the MPC - the ______ the multiplier






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






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






39. Made up of autonomous expenditure and induced expenditure






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






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






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






43. Dictates rises and falls in consumption expenditure






44. The purchase of foreign goods or services






45. Contractionary fiscal policy would be used to counteract _________






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






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






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






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






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