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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. A deficit that persists during full employment






2. Made up of autonomous expenditure and induced expenditure






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






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






5. According to classical theory - this is vertical






6. The larger the MPC - the ______ the multiplier






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


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






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






10. Appropriate changes in government expenditures that occur naturally






11. Dictates rises and falls in consumption expenditure






12. An increase in real GDP _________ imports






13. Equation for MPC out of real GDP






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






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






16. Sizes of MPS and multiplier






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






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






19. 'Supply creates its own demand.'


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. Contractionary fiscal policy would be used to counteract _________






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






24. Savings in circular flow diagram is...






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






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






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






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






29. Factors that change domestic imports






30. A deficit that arises out of a recession






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






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






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






34. Most economic theory is based on this






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






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






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






38. Two factors that influence or change investment plans






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






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






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






42. What changes government expenditure






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






44. The purchase of foreign goods or services






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






46. Real GDP - net taxes






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






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






49. The average tax rate rises with GDP






50. According to Keynesian theory - this is horizontal