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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. The magnitude of the multiplier depends on the ___ _____






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






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






5. What changes government expenditure






6. Most economic theory is based on this






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






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






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






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






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






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


13. Factors that change domestic imports






14. Sizes of MPS and multiplier






15. A deficit that arises out of a recession






16. Two factors that influence or change investment plans






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






18. The average tax rate rises with GDP






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






20. 'Supply creates its own demand.'


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






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






23. Real GDP - net taxes






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






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






26. A deficit that persists during full employment






27. Appropriate changes in government expenditures that occur naturally






28. The purchase of foreign goods or services






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






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






31. Dictates rises and falls in consumption expenditure






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






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






34. Equation for MPC out of real GDP






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






36. An increase in real GDP _________ imports






37. The larger the MPC - the ______ the multiplier






38. Made up of autonomous expenditure and induced expenditure






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






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






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






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






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






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






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






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






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






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






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






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