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






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






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






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






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






6. A deficit that arises out of a recession






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






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






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






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






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






12. A deficit that persists during full employment






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






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






15. Equation for MPC out of real GDP






16. The purchase of foreign goods or services






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






18. Appropriate changes in government expenditures that occur naturally






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






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






21. Sizes of MPS and multiplier






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






23. Dictates rises and falls in consumption expenditure






24. Savings in circular flow diagram is...






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






26. Two factors that influence or change investment plans






27. Factors that change domestic imports






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






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






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






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


32. The larger the MPC - the ______ the multiplier






33. Contractionary fiscal policy would be used to counteract _________






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






35. According to classical theory - this is vertical






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






37. Real GDP - net taxes






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






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






40. 'Supply creates its own demand.'


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






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






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






46. The average tax rate rises with GDP






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






48. Made up of autonomous expenditure and induced expenditure






49. What changes government expenditure






50. According to Keynesian theory - this is horizontal