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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. The average tax rate rises with GDP






2. The larger the MPC - the ______ the multiplier






3. A deficit that arises out of a recession






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






5. What changes government expenditure






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






7. Real GDP - net taxes






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






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






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






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






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






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






14. 'Supply creates its own demand.'


15. Contractionary fiscal policy would be used to counteract _________






16. Equation for MPC out of real GDP






17. A deficit that persists during full employment






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






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






20. According to Keynesian theory - this is horizontal






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






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






23. Appropriate changes in government expenditures that occur naturally






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






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






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






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






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






29. Savings in circular flow diagram is...






30. Made up of autonomous expenditure and induced expenditure






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






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






33. Most economic theory is based on this






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






35. Sizes of MPS and multiplier






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


37. An increase in real GDP _________ imports






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






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






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






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






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






43. Factors that change domestic imports






44. Two factors that influence or change investment plans






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






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






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






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






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






50. Dictates rises and falls in consumption expenditure