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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. Contractionary fiscal policy would be used to counteract _________






2. Made up of autonomous expenditure and induced expenditure






3. Equation for MPC out of real GDP






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






5. Dictates rises and falls in consumption expenditure






6. Most economic theory is based on this






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






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






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






10. According to classical theory - this is vertical






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






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






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






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






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






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






17. Real GDP - net taxes






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






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






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






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






22. An increase in real GDP _________ imports






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


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






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






26. Savings in circular flow diagram is...






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






28. A deficit that arises out of a recession






29. Two factors that influence or change investment plans






30. Sizes of MPS and multiplier






31. The larger the MPC - the ______ the multiplier






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






33. Appropriate changes in government expenditures that occur naturally






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






35. The average tax rate rises with GDP






36. The purchase of foreign goods or services






37. Factors that change domestic imports






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






39. According to Keynesian theory - this is horizontal






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






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






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






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






44. What changes government expenditure






45. 'Supply creates its own demand.'


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






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






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






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






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