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






2. Two factors that influence or change investment plans






3. The average tax rate rises with GDP






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






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






6. Equation for MPC out of real GDP






7. Factors that change domestic imports






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






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






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






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






12. What changes government expenditure






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






14. Contractionary fiscal policy would be used to counteract _________






15. Sizes of MPS and multiplier






16. According to Keynesian theory - this is horizontal






17. 'Supply creates its own demand.'

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18. An increase in real GDP _________ imports






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






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






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






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






23. A deficit that persists during full employment






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






25. Real GDP - net taxes






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






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






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






29. A deficit that arises out of a recession






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






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






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






33. Dictates rises and falls in consumption expenditure






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






35. Appropriate changes in government expenditures that occur naturally






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






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






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






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






40. Most economic theory is based on this






41. The larger the MPC - the ______ the multiplier






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






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






44. According to classical theory - this is vertical






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






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






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






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






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






50. Made up of autonomous expenditure and induced expenditure