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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. A decrease in government expenditures or an increase in taxes






2. A deficit that arises out of a recession






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






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






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






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






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






8. The purchase of foreign goods or services






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






10. A deficit that persists during full employment






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






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






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






14. According to classical theory - this is vertical






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






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






17. Savings in circular flow diagram is...






18. What changes government expenditure






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






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






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






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






23. According to Keynesian theory - this is horizontal






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






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






26. Equation for MPC out of real GDP






27. Factors that change domestic imports






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






29. Sizes of MPS and multiplier






30. Most economic theory is based on this






31. Contractionary fiscal policy would be used to counteract _________






32. An increase in real GDP _________ imports






33. Made up of autonomous expenditure and induced expenditure






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






35. The larger the MPC - the ______ the multiplier






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






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






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






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






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






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






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






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






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






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






46. Dictates rises and falls in consumption expenditure






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






48. 'Supply creates its own demand.'


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






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