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






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






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






4. Contractionary fiscal policy would be used to counteract _________






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






6. The larger the MPC - the ______ the multiplier






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






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






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






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






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






12. Savings in circular flow diagram is...






13. Dictates rises and falls in consumption expenditure






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






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






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






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






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






19. Most economic theory is based on this






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






21. Equation for MPC out of real GDP






22. Appropriate changes in government expenditures that occur naturally






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






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






25. A deficit that persists during full employment






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






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






28. Two factors that influence or change investment plans






29. The purchase of foreign goods or services






30. According to classical theory - this is vertical






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






32. What changes government expenditure






33. According to Keynesian theory - this is horizontal






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






35. Made up of autonomous expenditure and induced expenditure






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






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






38. An increase in real GDP _________ imports






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






40. Factors that change domestic imports






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






42. Sizes of MPS and multiplier






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






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






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






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






47. The average tax rate rises with GDP






48. 'Supply creates its own demand.'


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


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