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






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






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






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






5. Appropriate changes in government expenditures that occur naturally






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






7. Two factors that influence or change investment plans






8. According to Keynesian theory - this is horizontal






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






10. Sizes of MPS and multiplier






11. Equation for MPC out of real GDP






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






13. The average tax rate rises with GDP






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






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






16. 'Supply creates its own demand.'


17. A deficit that arises out of a recession






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






19. The purchase of foreign goods or services






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






21. Factors that change domestic imports






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






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






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






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






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






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






28. Real GDP - net taxes






29. According to classical theory - this is vertical






30. Savings in circular flow diagram is...






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


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






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






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






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






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






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






38. Dictates rises and falls in consumption expenditure






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






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






41. Contractionary fiscal policy would be used to counteract _________






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






43. An increase in real GDP _________ imports






44. Made up of autonomous expenditure and induced expenditure






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






46. A deficit that persists during full employment






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






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






49. Most economic theory is based on this






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