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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. Two factors that influence or change investment plans






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






3. Factors that change domestic imports






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






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






6. The larger the MPC - the ______ the multiplier






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






8. Appropriate changes in government expenditures that occur naturally






9. A deficit that persists during full employment






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






11. The purchase of foreign goods or services






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






13. The average tax rate rises with GDP






14. Sizes of MPS and multiplier






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






16. Made up of autonomous expenditure and induced expenditure






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






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






19. According to Keynesian theory - this is horizontal






20. 'Supply creates its own demand.'


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






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






23. Most economic theory is based on this






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






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






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






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






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






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






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






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






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






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






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






35. An increase in real GDP _________ imports






36. What changes government expenditure






37. Equation for MPC out of real GDP






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






39. According to classical theory - this is vertical






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






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






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






43. A deficit that arises out of a recession






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






45. Savings in circular flow diagram is...






46. Contractionary fiscal policy would be used to counteract _________






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






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


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






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