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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. Expansionary fiscal policy would be used to counteract a _________






2. An increase in real GDP _________ imports






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






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






5. Contractionary fiscal policy would be used to counteract _________






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






7. Dictates rises and falls in consumption expenditure






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






9. A deficit that persists during full employment






10. Sizes of MPS and multiplier






11. Appropriate changes in government expenditures that occur naturally






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






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






14. Real GDP - net taxes






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






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






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






18. Made up of autonomous expenditure and induced expenditure






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






20. According to classical theory - this is vertical






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






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






23. According to Keynesian theory - this is horizontal






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






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






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






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






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






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






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






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






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






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

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34. The purchase of foreign goods or services






35. Factors that change domestic imports






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






37. A deficit that arises out of a recession






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






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






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






41. 'Supply creates its own demand.'

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






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






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






45. Savings in circular flow diagram is...






46. Two factors that influence or change investment plans






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






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






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






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