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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 time of production during which there are only essentially variable costs






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






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






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






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






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






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






8. An increase in real GDP _________ imports






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






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






11. Savings in circular flow diagram is...






12. Factors that change domestic imports






13. Dictates rises and falls in consumption expenditure






14. A deficit that arises out of a recession






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






16. According to classical theory - this is vertical






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






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






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






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






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






22. A deficit that persists during full employment






23. The larger the MPC - the ______ the multiplier






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






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






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






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






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






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






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






31. Sizes of MPS and multiplier






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






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






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






35. According to Keynesian theory - this is horizontal






36. Two factors that influence or change investment plans






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






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






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






40. Most economic theory is based on this






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






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






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






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






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






46. The purchase of foreign goods or services






47. What changes government expenditure






48. Contractionary fiscal policy would be used to counteract _________






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






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