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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. Contractionary fiscal policy would be used to counteract _________






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






3. Equation for MPC out of real GDP






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






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






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






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

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8. Dictates rises and falls in consumption expenditure






9. A deficit that arises out of a recession






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






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






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






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






14. Most economic theory is based on this






15. The purchase of foreign goods or services






16. According to classical theory - this is vertical






17. Savings in circular flow diagram is...






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






19. The average tax rate rises with GDP






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






21. 'Supply creates its own demand.'

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22. Factors that change domestic imports






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






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






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






26. Real GDP - net taxes






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






28. Appropriate changes in government expenditures that occur naturally






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






30. According to Keynesian theory - this is horizontal






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






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






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






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






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






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






37. What changes government expenditure






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






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






40. A deficit that persists during full employment






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






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






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






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






45. Sizes of MPS and multiplier






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






47. Two factors that influence or change investment plans






48. Made up of autonomous expenditure and induced expenditure






49. The larger the MPC - the ______ the multiplier






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