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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. The average tax rate rises with GDP






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






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






4. The purchase of foreign goods or services






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






6. According to Keynesian theory - this is horizontal






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






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






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






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


11. A deficit that persists during full employment






12. Dictates rises and falls in consumption expenditure






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






14. What changes government expenditure






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






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






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






18. The larger the MPC - the ______ the multiplier






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






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






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






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






23. Savings in circular flow diagram is...






24. Sizes of MPS and multiplier






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






26. Appropriate changes in government expenditures that occur naturally






27. Equation for MPC out of real GDP






28. An increase in real GDP _________ imports






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






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






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






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






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






34. Real GDP - net taxes






35. Made up of autonomous expenditure and induced expenditure






36. 'Supply creates its own demand.'


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






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






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






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






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






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






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






44. Two factors that influence or change investment plans






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






46. A deficit that arises out of a recession






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






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






49. Factors that change domestic imports






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