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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. According to classical theory - demand for this creates unemployment






2. Contractionary fiscal policy would be used to counteract _________






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






4. The average tax rate rises with GDP






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






6. According to Keynesian theory - this is horizontal






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






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






9. Appropriate changes in government expenditures that occur naturally






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






11. Factors that change domestic imports






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






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






14. According to classical theory - this is vertical






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






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






17. What changes government expenditure






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






19. An increase in real GDP _________ imports






20. Made up of autonomous expenditure and induced expenditure






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






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






23. Sizes of MPS and multiplier






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






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






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






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






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






29. Most economic theory is based on this






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

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






32. Dictates rises and falls in consumption expenditure






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






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






35. Two factors that influence or change investment plans






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






37. Real GDP - net taxes






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






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






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






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






42. Equation for MPC out of real GDP






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






44. The larger the MPC - the ______ the multiplier






45. 'Supply creates its own demand.'

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






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






48. A deficit that arises out of a recession






49. The purchase of foreign goods or services






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