Test your basic knowledge |

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






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






3. A deficit that arises out of a recession






4. Appropriate changes in government expenditures that occur naturally






5. Savings in circular flow diagram is...






6. Sizes of MPS and multiplier






7. Factors that change domestic imports






8. Dictates rises and falls in consumption expenditure






9. According to Keynesian theory - this is horizontal






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






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






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






13. What changes government expenditure






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






15. The average tax rate rises with GDP






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






17. The purchase of foreign goods or services






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






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


20. A deficit that persists during full employment






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






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






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






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






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






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






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






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






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. The capitalistic economy would tend to employ its resources fully






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






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






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






34. Real GDP - net taxes






35. According to classical theory - this is vertical






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






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






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






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






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






41. Contractionary fiscal policy would be used to counteract _________






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






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






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






45. Equation for MPC out of real GDP






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






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






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






49. Made up of autonomous expenditure and induced expenditure






50. Most economic theory is based on this