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. Equation for MPC out of real GDP






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






3. A deficit that persists during full employment






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






5. Real GDP - net taxes






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






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






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






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






10. An increase in real GDP _________ imports






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






12. Sizes of MPS and multiplier






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






14. A deficit that arises out of a recession






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






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






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






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






19. Dictates rises and falls in consumption expenditure






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






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






22. What changes government expenditure






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






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






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






26. The average tax rate rises with GDP






27. Made up of autonomous expenditure and induced expenditure






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






29. Two factors that influence or change investment plans






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


31. Factors that change domestic imports






32. Savings in circular flow diagram is...






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






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






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






36. The purchase of foreign goods or services






37. 'Supply creates its own demand.'

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






39. Appropriate changes in government expenditures that occur naturally






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






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






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






43. According to Keynesian theory - this is horizontal






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






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






46. According to classical theory - this is vertical






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






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






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






50. Most economic theory is based on this