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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. According to Keynesian theory - this is horizontal






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






3. The purchase of foreign goods or services






4. Two factors that influence or change investment plans






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






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






7. Appropriate changes in government expenditures that occur naturally






8. 'Supply creates its own demand.'


9. Contractionary fiscal policy would be used to counteract _________






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






11. The average tax rate rises with GDP






12. Equation for MPC out of real GDP






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






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






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






16. Factors that change domestic imports






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






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






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






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






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






22. A deficit that persists during full employment






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






24. A deficit that arises out of a recession






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






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






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






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






29. The larger the MPC - the ______ the multiplier






30. Real GDP - net taxes






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






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






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






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






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






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






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






38. Sizes of MPS and multiplier






39. Made up of autonomous expenditure and induced expenditure






40. An increase in real GDP _________ imports






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






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






43. Savings in circular flow diagram is...






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






45. According to classical theory - this is vertical






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


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






48. Most economic theory is based on this






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






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