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CLEP Macroeconomics: Measurement Of Economic Performance - 2

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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