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






2. According to classical theory - this is vertical






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






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






5. Most economic theory is based on this






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






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






8. According to Keynesian theory - this is horizontal






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






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






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






12. Savings in circular flow diagram is...






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


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






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






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






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






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






19. Two factors that influence or change investment plans






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






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






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






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






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






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






26. What changes government expenditure






27. Dictates rises and falls in consumption expenditure






28. The larger the MPC - the ______ the multiplier






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






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






31. 'Supply creates its own demand.'


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






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






34. Appropriate changes in government expenditures that occur naturally






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






36. The purchase of foreign goods or services






37. Contractionary fiscal policy would be used to counteract _________






38. Equation for MPC out of real GDP






39. Made up of autonomous expenditure and induced expenditure






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. Real GDP - net taxes






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






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






44. Factors that change domestic imports






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






46. An increase in real GDP _________ imports






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






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






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






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