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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 purchase of foreign goods or services






2. The larger the MPC - the ______ the multiplier






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






4. An increase in real GDP _________ imports






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






6. Most economic theory is based on this






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






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






9. What changes government expenditure






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






11. The average tax rate rises with GDP






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






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






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






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






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






17. A deficit that persists during full employment






18. Savings in circular flow diagram is...






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






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






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






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






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






24. Appropriate changes in government expenditures that occur naturally






25. Dictates rises and falls in consumption expenditure






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






27. Equation for MPC out of real GDP






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






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






30. Sizes of MPS and multiplier






31. A deficit that arises out of a recession






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






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






34. 'Supply creates its own demand.'


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






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






37. Contractionary fiscal policy would be used to counteract _________






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






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






40. Factors that change domestic imports






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






42. Two factors that influence or change investment plans






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






44. Made up of autonomous expenditure and induced expenditure






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






46. Real GDP - net taxes






47. According to Keynesian theory - this is horizontal






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






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






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