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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. The sale of goods and services to households






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






3. Cost of living allowance






4. Cyclical unemployment is at 0






5. 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.






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

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7. Temporary and associated with turnover in the labor market






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






9. Maximum output of business cycle






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






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






12. 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






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






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






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






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






17. All investment spending by government and business firms






18. The percentage of unemployed workers in the civilian labor force






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






20. Recurrent ups and downs of economic activity






21. Income earned that is available to resource suppliers and others before payment of personal taxes






22. (base year basket valued at current year prices/base year basket valued at base year prices) x 100






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






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






25. 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






26. The average of all prices is falling






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






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






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






30. 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






31. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc






32. Consumption - investment - government - and net exports






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






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






35. Periodic and predictable economic changes






36. 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)






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






38. Shows how money and goods and services flow between the various markets and players in the economy






39. Inflation caused by excess demand in the economy






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






41. Income earned by the factors of production for their current contributions to production; total dollar value of all final goods and services produced for consumption in society during a particular time period






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






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






44. GDP = C + Ig + G + Xn






45. Frictional + structural unemployment






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






47. Monetary






48. Output sacrificed due to unemployment






49. Caused by the actions of people who have come to expect a certain amount of inflation in the economy






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