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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 capitalist economy does not tend to employ its resources fully


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






3. Contractionary fiscal policy would be used to counteract _________






4. A deficit that arises out of a recession






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






6. A deficit that persists during full employment






7. Most economic theory is based on this






8. 'Supply creates its own demand.'


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






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






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






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






13. Two factors that influence or change investment plans






14. An increase in real GDP _________ imports






15. Dictates rises and falls in consumption expenditure






16. Factors that change domestic imports






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. According to classical theory - this is vertical






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






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






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






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






23. Appropriate changes in government expenditures that occur naturally






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






25. The purchase of foreign goods or services






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






27. Savings in circular flow diagram is...






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






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






30. The average tax rate rises with GDP






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






32. Sizes of MPS and multiplier






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






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






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






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






37. Real GDP - net taxes






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






39. The larger the MPC - the ______ the multiplier






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






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






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






43. What changes government expenditure






44. Equation for MPC out of real GDP






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






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






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






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






49. According to Keynesian theory - this is horizontal






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