Test your basic knowledge |

CLEP Macroeconomics: Monetary And Fiscal Policy

Subjects : clep, economics
Instructions:
  • Answer 48 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. Classical economists believe that the AS curve is _______






2. Taxes and transfer payments that stabilize GDP without requiring policymakers to take explicit actions






3. The government must go to the money markets and compete with the private sector for funds






4. PQ or price level times physical volume of goods and services - is equal to...






5. Amount spent = amount received - which is equation of exchange






6. Feeds on interest payments & limits a government's ability to use discretionary stabilization policies






7. The competition in the marketplace provides economic stability






8. According to Keynesian economists - this could pull the economy out of a recession or depression






9. _________ will prefer to consume than to save






10. The use of monetary policy by the central bank to cushion the blow of aggregate supply shocks






11. This consequence of national debt may lead to inflation






12. Modern fiscal policy favors this kind of budgets for the purpose of economic stabilization






13. The economy may stagnate in the absence of proper work - saving and investment incentives






14. The price level rises and money loses value






15. Fundamental equation of monetarism






16. Inflation that results from an initial increase in costs






17. New Classical Economists assert that households and firms pursue economics for their own ____-_________






18. Rational Expectations Theorists






19. Balancing the budget is secondary to ensuring that the economy runs at a non-inflationary full employment level






20. Inflation that results from an initial increase in aggregate demand






21. One source of public debt






22. Inflation accompanied by simultaneous increases in prices and unemployment






23. ______ ______ is most important in a monetarist's view for determining output - price and employment levels






24. This kind of fiscal policy is necessary for a balanced budget - would tend to magnify the changes in the economy - and make the business cycle more pronounced






25. Money supply - velocity - price level - physical volume of goods and services






26. Relationship between inflation and unemployment






27. According to RET - cost of this depends on whether or not it is expected






28. Using taxes and spending to influence the level of GDP in the short run






29. A sudden and drastic change in the supply curve






30. Large annual debts create this - promoting imports and stifling exports






31. NCE/RET imply that the aggregate supply curve is _______






32. _____ tend to alter the behaviour of the public when imposed by the government






33. Keynesian economics believes that AD is ________






34. According to Keynesian theory - AS curve is __________






35. Money is at the root of aggregate demand






36. Three ways the government could reduce deficit: increase/decrease (1) taxes - (2) spending - and (3) interest rates






37. In the short-run prices and wages are downwardly inflexible






38. Believe that markets are highly competitive and adjust prices quickly to changes in supply and demand






39. This kind of budget exerts counter-cyclical pressure on the economy - balancing the budgets in the bad times with the surpluses of the good times






40. Basic Keynesian economic equation






41. The budget must be balanced each year






42. Prices adjust in a natural way to bring the markets for goods and labor into equilibrium






43. Which kind of inflation avoids some of the costs?






44. Accumulation of government deficits






45. Encourage foreign investment






46. Keynesian economists believe that monetary policy is a ____ tool for economic stability






47. Relation between inflation and unemployment






48. According to classical economics - AD curve is stable if....






Can you answer 50 questions in 15 minutes?



Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests