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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. The capitalistic economy would tend to employ its resources fully






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






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






4. The average tax rate rises with GDP






5. Made up of autonomous expenditure and induced expenditure






6. Sizes of MPS and multiplier






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






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


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






10. According to Keynesian theory - this is horizontal






11. According to classical theory - this is vertical






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






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






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






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






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






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






18. The purchase of foreign goods or services






19. Real GDP - net taxes






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






21. Contractionary fiscal policy would be used to counteract _________






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






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






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






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






26. Dictates rises and falls in consumption expenditure






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






28. A deficit that persists during full employment






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






30. Two factors that influence or change investment plans






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






32. Most economic theory is based on this






33. What changes government expenditure






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






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






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






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






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






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






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






41. The larger the MPC - the ______ the multiplier






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






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






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






45. Savings in circular flow diagram is...






46. 'Supply creates its own demand.'


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






48. Appropriate changes in government expenditures that occur naturally






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






50. An increase in real GDP _________ imports