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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. Opposite of traditional view; supply side effects are dominant






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






3. An increase in real GDP _________ imports






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






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






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






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






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


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






10. Dictates rises and falls in consumption expenditure






11. Two factors that influence or change investment plans






12. A deficit that arises out of a recession






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






14. Savings in circular flow diagram is...






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






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






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






18. The larger the MPC - the ______ the multiplier






19. Sizes of MPS and multiplier






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






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






22. Real GDP - net taxes






23. Most economic theory is based on this






24. Contractionary fiscal policy would be used to counteract _________






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






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






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






28. The average tax rate rises with GDP






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






30. According to classical theory - this is vertical






31. Factors that change domestic imports






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






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






34. What changes government expenditure






35. 'Supply creates its own demand.'


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






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






38. Equation for MPC out of real GDP






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






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






41. A deficit that persists during full employment






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






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






44. Appropriate changes in government expenditures that occur naturally






45. The purchase of foreign goods or services






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






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






48. According to Keynesian theory - this is horizontal






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






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