Test your basic knowledge |

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






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






3. Factors that change domestic imports






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






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






6. Real GDP - net taxes






7. Appropriate changes in government expenditures that occur naturally






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






9. Contractionary fiscal policy would be used to counteract _________






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






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






12. Savings in circular flow diagram is...






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






14. The larger the MPC - the ______ the multiplier






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






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






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






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






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






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






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






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






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






26. The purchase of foreign goods or services






27. A deficit that persists during full employment






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






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






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






31. According to Keynesian theory - this is horizontal






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






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






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






35. What changes government expenditure






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






37. Two factors that influence or change investment plans






38. Made up of autonomous expenditure and induced expenditure






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






40. A deficit that arises out of a recession






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






42. Dictates rises and falls in consumption expenditure






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






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






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






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






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






48. Equation for MPC out of real GDP






49. Most economic theory is based on this






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