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






2. What changes government expenditure






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






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






5. Dictates rises and falls in consumption expenditure






6. According to Keynesian theory - this is horizontal






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






8. Contractionary fiscal policy would be used to counteract _________






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






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






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






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






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






14. The average tax rate rises with GDP






15. Savings in circular flow diagram is...






16. Factors that change domestic imports






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






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






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






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






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






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






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






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






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






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






27. Equation for MPC out of real GDP






28. Sizes of MPS and multiplier






29. According to classical theory - this is vertical






30. An increase in real GDP _________ imports






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






32. Two factors that influence or change investment plans






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






34. Appropriate changes in government expenditures that occur naturally






35. Most economic theory is based on this






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






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






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






39. Real GDP - net taxes






40. A deficit that persists during full employment






41. A deficit that arises out of a recession






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






43. Made up of autonomous expenditure and induced expenditure






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






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






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


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






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






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






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