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CLEP Macroeconomics: Measurement Of Economic Performance - 2

Subjects : clep, economics
  • Answer 50 questions in 15 minutes.
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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. Expansionary fiscal policy would be used to counteract a _________

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

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

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

5. What changes government expenditure

6. Most economic theory is based on this

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

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

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

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

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

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

13. Factors that change domestic imports

14. Sizes of MPS and multiplier

15. A deficit that arises out of a recession

16. Two factors that influence or change investment plans

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

18. The average tax rate rises with GDP

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

20. 'Supply creates its own demand.'

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

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

23. Real GDP - net taxes

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

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

26. A deficit that persists during full employment

27. Appropriate changes in government expenditures that occur naturally

28. The purchase of foreign goods or services

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

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

31. Dictates rises and falls in consumption expenditure

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

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

34. Equation for MPC out of real GDP

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

36. An increase in real GDP _________ imports

37. The larger the MPC - the ______ the multiplier

38. Made up of autonomous expenditure and induced expenditure

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

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

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

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

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

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

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

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

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

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

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

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