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






2. The sale of goods and services to households






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






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






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






6. Cyclical unemployment is at 0






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






8. Consumption - investment - government - and net exports






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






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






11. 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






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






13. Inflation caused by excess demand in the economy






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






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






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






17. Temporary and associated with turnover in the labor market






18. GDP = C + Ig + G + Xn






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


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






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






22. Periodic and predictable economic changes






23. Monetary






24. Recurrent ups and downs of economic activity






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






26. 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






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






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






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






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






31. 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






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






33. 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.






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






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






36. Output sacrificed due to unemployment






37. Personal income less income taxes






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






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






40. 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






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






42. All investment spending by government and business firms






43. Frictional + structural unemployment






44. Maximum output of business cycle






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






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






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






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






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






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