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






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






3. Contractionary fiscal policy would be used to counteract _________






4. Real GDP - net taxes






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






6. Two factors that influence or change investment plans






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






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






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






10. According to classical theory - this is vertical






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






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






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






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. The larger the MPC - the ______ the multiplier






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






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






19. 'Supply creates its own demand.'


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






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






22. A deficit that persists during full employment






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






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






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






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






27. What changes government expenditure






28. A deficit that arises out of a recession






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






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






31. Most economic theory is based on this






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






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






34. Factors that change domestic imports






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






36. The average tax rate rises with GDP






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






38. Sizes of MPS and multiplier






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






40. Equation for MPC out of real GDP






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






42. Dictates rises and falls in consumption expenditure






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






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






45. Made up of autonomous expenditure and induced expenditure






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






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






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






49. According to Keynesian theory - this is horizontal






50. Savings in circular flow diagram is...