Test your basic knowledge |

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






2. The purchase of foreign goods or services






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

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


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






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






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






7. Sizes of MPS and multiplier






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






9. The larger the MPC - the ______ the multiplier






10. The average tax rate rises with GDP






11. According to Keynesian theory - this is horizontal






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






13. An increase in real GDP _________ imports






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






15. Appropriate changes in government expenditures that occur naturally






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






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






18. Real GDP - net taxes






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






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






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






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






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






24. 'Supply creates its own demand.'

Warning: Invalid argument supplied for foreach() in /var/www/html/basicversity.com/show_quiz.php on line 183


25. Contractionary fiscal policy would be used to counteract _________






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






27. Most economic theory is based on this






28. Dictates rises and falls in consumption expenditure






29. Made up of autonomous expenditure and induced expenditure






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






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






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






33. A deficit that persists during full employment






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






35. What changes government expenditure






36. Two factors that influence or change investment plans






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






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






39. Factors that change domestic imports






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






41. According to classical theory - this is vertical






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






43. Equation for MPC out of real GDP






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






45. A deficit that arises out of a recession






46. Savings in circular flow diagram is...






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






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






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






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