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CLEP Macroeconomics: Measurement Of Economic Performance

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. Used to calculate how long it will take for prices to double; divide the number 70 by the annual inflation rate to find out how many years it will take for prices to double






2. Results from laborers having a mismatched skill set with what is demanded by the current labor market






3. The total net sales of goods sold abroad minus the total net spent on purchases from other countries






4. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions






5. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military






6. Phase of the business cycle where output and employment begin to move toward full employment






7. Monetary






8. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP






9. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs


10. A person who is available for and looking for work - but has none






11. Output measured at current prices - and thus unadjusted figure for GDP






12. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories






13. Cost of living allowance






14. Frictional + structural unemployment






15. Recurrent ups and downs of economic activity






16. The number of dollars one receives as wages - rent - interest or profit






17. Temporary and associated with turnover in the labor market






18. Used for comparing the price of a specific market basket of goods and services in one particular year to the price in a base year






19. A basic accounting measure of total production of goods and services of the national economy in one year






20. Personal income less income taxes






21. Those who are on ______ incomes are hurt most by inflation






22. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP






23. Inflation arising from the supply or cost side of the economy






24. Measures GDP by adding up all that is spent by various consumers on this year's total output of final goods and services; also called gross national expenditure (GNE)






25. The sale of goods and services to households






26. Total income earned by resource suppliers for their contributions to the production of the GNP






27. Excess unemployment caused because the economy deviates from the long run output potential of the economy






28. Periodic and predictable economic changes






29. All investment spending by government and business firms






30. Government purchase of goods and services; does not include transfer payments and expenditures for servicing the national debt or investment goods






31. Measures the amount of goods and services one's money can buy; measures purchasing power






32. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health






33. The average of all prices is falling






34. GDP = C + Ig + G + Xn






35. Output measured at base year prices - and thus adjusted






36. Wages - represents monies earned by labor - including pensions - workman's compensation - and insurance






37. Calculate spending and income: what is spent on a product is received as income by those who contributed to the product's production. the spending amount and income amount should equal one another.






38. A sustained rise in the general price level of an economy






39. All people living in a society who are of legal age to work






40. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP






41. Cyclical unemployment is at 0






42. Phase of the business cycle where output and employment are at their lowest levels






43. The civilian labor force expressed as a percentage of the labor force population






44. GDI = w + i + r + pi + misc






45. Maximum output of business cycle






46. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)






47. Output sacrificed due to unemployment






48. Phase of the business cycle which is characterized by a period of at least six months where there is a decline in total output - income and employment






49. The price index that puts all goods and services in the market basket; measures the overall price level change - not just a change in price of typical consumer goods






50. Inflation caused by excess demand in the economy