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. Change in imports divided by the change in 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. A deficit that arises out of a recession






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






5. What changes government expenditure






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






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






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






9. An increase in real GDP _________ imports






10. Savings in circular flow diagram is...






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






12. Two factors that influence or change investment plans






13. Equation for MPC out of real GDP






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






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






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






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






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






19. Dictates rises and falls in consumption expenditure






20. Sizes of MPS and multiplier






21. The larger the MPC - the ______ the multiplier






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






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






24. According to classical theory - this is vertical






25. 'Supply creates its own demand.'


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






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






28. Contractionary fiscal policy would be used to counteract _________






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






30. Made up of autonomous expenditure and induced expenditure






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






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






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






34. Most economic theory is based on this






35. Factors that change domestic imports






36. The purchase of foreign goods or services






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






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






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






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






41. Appropriate changes in government expenditures that occur naturally






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






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






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






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






46. Real GDP - net taxes






47. The average tax rate rises with GDP






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






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






50. According to Keynesian theory - this is horizontal