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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 time of production during which there are only essentially variable costs






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






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






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






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






6. Sizes of MPS and multiplier






7. Most economic theory is based on this






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






9. Appropriate changes in government expenditures that occur naturally






10. Two factors that influence or change investment plans






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






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






13. The larger the MPC - the ______ the multiplier






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






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






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






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






18. According to Keynesian theory - this is horizontal






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






20. Contractionary fiscal policy would be used to counteract _________






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






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


23. Savings in circular flow diagram is...






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






25. 'Supply creates its own demand.'


26. A deficit that persists during full employment






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






28. Made up of autonomous expenditure and induced expenditure






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






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






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






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






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






34. An increase in real GDP _________ imports






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






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






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






38. The purchase of foreign goods or services






39. Equation for MPC out of real GDP






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






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






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






43. Dictates rises and falls in consumption expenditure






44. What changes government expenditure






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






46. A deficit that arises out of a recession






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






48. The average tax rate rises with GDP






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






50. Real GDP - net taxes