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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 change in equilibrium expenditure divided by a change in aggregate expenditure






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






3. Real GDP - net taxes






4. According to Keynesian theory - this is horizontal






5. Made up of autonomous expenditure and induced expenditure






6. Appropriate changes in government expenditures that occur naturally






7. Sizes of MPS and multiplier






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






9. Equation for MPC out of real GDP






10. Dictates rises and falls in consumption expenditure






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






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






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






14. Two factors that influence or change investment plans






15. According to classical theory - this is vertical






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






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






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






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






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






21. What changes government expenditure






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






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






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






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






26. A deficit that arises out of a recession






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






28. The larger the MPC - the ______ the multiplier






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






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






31. An increase in real GDP _________ imports






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






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






34. The average tax rate rises with GDP






35. A deficit that persists during full employment






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






37. Factors that change domestic imports






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






39. 'Supply creates its own demand.'






40. Savings in circular flow diagram is...






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






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






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






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






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






46. Most economic theory is based on this






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






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






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






50. The purchase of foreign goods or services