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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. Frictional + structural unemployment






2. The sale of goods and services to households






3. 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






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






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






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






7. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer






8. Periodic and predictable economic changes






9. All investment spending by government and business firms






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






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






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

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






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






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






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






17. Cyclical unemployment is at 0






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






19. Cost of living allowance






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






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






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






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






24. Consumption - investment - government - and net exports






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






26. 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






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






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






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






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






31. 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






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






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






34. 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)






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






36. The average of all prices is falling






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






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






39. Personal income less income taxes






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






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






42. 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






43. GDP = C + Ig + G + Xn






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






45. Temporary and associated with turnover in the labor market






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






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






48. Inflation caused by excess demand in the economy






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