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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. 'Supply creates its own demand.'


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






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






4. The average tax rate rises with GDP






5. Most economic theory is based on this






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






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






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






9. A deficit that arises out of a recession






10. Made up of autonomous expenditure and induced expenditure






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






12. Sizes of MPS and multiplier






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






14. Equation for MPC out of real GDP






15. The larger the MPC - the ______ the multiplier






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






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






18. Appropriate changes in government expenditures that occur naturally






19. Two factors that influence or change investment plans






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






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






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






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






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






25. An increase in real GDP _________ imports






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






27. What changes government expenditure






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






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






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






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






32. According to Keynesian theory - this is horizontal






33. Dictates rises and falls in consumption expenditure






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






35. Contractionary fiscal policy would be used to counteract _________






36. Savings in circular flow diagram is...






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






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






39. Factors that change domestic imports






40. A deficit that persists during full employment






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






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






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






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






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






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






47. Real GDP - net taxes






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






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






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