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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. Dictates rises and falls in consumption expenditure






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






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






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






5. The purchase of foreign goods or services






6. Made up of autonomous expenditure and induced expenditure






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






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






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






10. A deficit that arises out of a recession






11. Real GDP - net taxes






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






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






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

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






17. According to Keynesian theory - this is horizontal






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






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






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






21. 'Supply creates its own demand.'

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22. A deficit that persists during full employment






23. Appropriate changes in government expenditures that occur naturally






24. The average tax rate rises with GDP






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






26. Savings in circular flow diagram is...






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






28. An increase in real GDP _________ imports






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






30. The larger the MPC - the ______ the multiplier






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






32. According to classical theory - this is vertical






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






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






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






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






37. Contractionary fiscal policy would be used to counteract _________






38. What changes government expenditure






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






40. Factors that change domestic imports






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






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






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






45. Two factors that influence or change investment plans






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






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






48. Equation for MPC out of real GDP






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






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