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. The magnitude of the multiplier depends on the ___ _____






2. According to classical theory - this is vertical






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






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






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






6. The larger the MPC - the ______ the multiplier






7. Dictates rises and falls in consumption expenditure






8. Two factors that influence or change investment plans






9. Most economic theory is based on this






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






11. Appropriate changes in government expenditures that occur naturally






12. Savings in circular flow diagram is...






13. Contractionary fiscal policy would be used to counteract _________






14. The average tax rate rises with GDP






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






16. A deficit that persists during full employment






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






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






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






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






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






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






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






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






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






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






27. Factors that change domestic imports






28. Equation for MPC out of real GDP






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






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






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






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






33. Sizes of MPS and multiplier






34. A deficit that arises out of a recession






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






36. According to Keynesian theory - this is horizontal






37. What changes government expenditure






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






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






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






41. The purchase of foreign goods or services






42. 'Supply creates its own demand.'






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






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






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






46. Made up of autonomous expenditure and induced expenditure






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






48. Real GDP - net taxes






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






50. An increase in real GDP _________ imports