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






2. Real GDP - net taxes






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






4. Dictates rises and falls in consumption expenditure






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

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






7. A deficit that persists during full employment






8. The larger the MPC - the ______ the multiplier






9. The average tax rate rises with GDP






10. Equation for MPC out of real GDP






11. Made up of autonomous expenditure and induced expenditure






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






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






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






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






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






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






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






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






20. Appropriate changes in government expenditures that occur naturally






21. 'Supply creates its own demand.'

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






23. Factors that change domestic imports






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






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






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






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






28. Savings in circular flow diagram is...






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






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






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






32. An increase in real GDP _________ imports






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






34. A deficit that arises out of a recession






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






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






37. Contractionary fiscal policy would be used to counteract _________






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






39. Two factors that influence or change investment plans






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






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






42. Sizes of MPS and multiplier






43. According to classical theory - this is vertical






44. Most economic theory is based on this






45. The purchase of foreign goods or services






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






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






48. According to Keynesian theory - this is horizontal






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






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