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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. Two factors that influence or change investment plans






2. What changes government expenditure






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






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






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






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






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






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






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






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






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






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






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






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






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






16. Savings in circular flow diagram is...






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






18. Appropriate changes in government expenditures that occur naturally






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






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






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






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






23. A deficit that arises out of a recession






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






25. A deficit that persists during full employment






26. The purchase of foreign goods or services






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






28. Real GDP - net taxes






29. Made up of autonomous expenditure and induced expenditure






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


31. Equation for MPC out of real GDP






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






33. The average tax rate rises with GDP






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






35. Most economic theory is based on this






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






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






38. Sizes of MPS and multiplier






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






40. Dictates rises and falls in consumption expenditure






41. The larger the MPC - the ______ the multiplier






42. According to classical theory - this is vertical






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






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






45. Factors that change domestic imports






46. Contractionary fiscal policy would be used to counteract _________






47. According to Keynesian theory - this is horizontal






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






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






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