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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. 'Supply creates its own demand.'


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






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






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






5. What changes government expenditure






6. The average tax rate rises with GDP






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






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






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






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






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






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






13. Equation for MPC out of real GDP






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






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






16. Contractionary fiscal policy would be used to counteract _________






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






18. The purchase of foreign goods or services






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






20. A deficit that arises out of a recession






21. Most economic theory is based on this






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


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






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






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






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






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






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






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






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






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






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






33. Made up of autonomous expenditure and induced expenditure






34. Appropriate changes in government expenditures that occur naturally






35. Two factors that influence or change investment plans






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






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






38. An increase in real GDP _________ imports






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






40. Savings in circular flow diagram is...






41. Sizes of MPS and multiplier






42. The larger the MPC - the ______ the multiplier






43. According to Keynesian theory - this is horizontal






44. Factors that change domestic imports






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






46. According to classical theory - this is vertical






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






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






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






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