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Test your basic knowledge |
CLEP Macroeconomics: Measurement Of Economic Performance
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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. Those who are on ______ incomes are hurt most by inflation
real income
circular flow diagram
fixed income
GDP measures the market value of annual output and it is a __________ measure.
2. 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)
GDP (Gross Domestic Product)
intermediate goods
price index
expenditure approach
3. Measures national income as the sum of the incomes received by productive resources in the economy; also called Gross Domestic Income (GDI)
Consumer Price Index (CPI)
consumption expenditures
income approach
labor force
4. 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
non-production transactions
recession
GDP Price Index
national income accounting
5. Monetary
structural unemployment
GDP measures the market value of annual output and it is a __________ measure.
structural / expectational inflation
Okun's Law
6. Temporary and associated with turnover in the labor market
consumption expenditures
seasonal changes
frictional unemployment
demand pull
7. Excess unemployment caused because the economy deviates from the long run output potential of the economy
cyclical / deficit demand unemployment
five sources of income
natural employment
consumption expenditures
8. The civilian labor force expressed as a percentage of the labor force population
real GDP
participation rate
unemployment rate
natural employment
9. Caused by the actions of people who have come to expect a certain amount of inflation in the economy
structural / expectational inflation
unemployment rate
participation rate
GDP gap
10. For every 1% the actual unemployment rate exceeds the natural (frictional + structural) unemployment rate - a 2.5% GDP gap occurs
11. Recurrent ups and downs of economic activity
seasonal unemployment
unemployed
business cycle
five sources of income
12. The sale of a finished good or product directly to a consumer (baker sells bread to customer); counted in GDP
CPI equation
final goods
income approach
largest category of GDI
13. Output measured at current prices - and thus unadjusted figure for GDP
Consumer Price Index (CPI)
GDP equation (expenditure approach)
nominal income
nominal GDP
14. 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.
consumption expenditures
how to determine GDP
frictional unemployment
inflation
15. Allows us to keep tabs on the economic health of society and to develop policies that will improve that health
disposable income
national income accounting
final goods
expansion / recovery
16. Measures the prices of a fixed market basket of over 300 consumer goods and services purchased by the typical urban consumer
participation rate
natural employment
Consumer Price Index (CPI)
national income accounting
17. Results from a pattern of work that changes due to seasonal fluctuations in demand or due to changing weather conditions
seasonal unemployment
unemployment rate
Okun's Law
GDP (Gross Domestic Product)
18. All people who are either employed or unemployed - but excludes people who are institutionalized or in the military
fixed income
participation rate
seasonal unemployment
civilian labor force
19. Periodic and predictable economic changes
seasonal changes
seasonal unemployment
Okun's Law
net export expenditures
20. The sale of goods and services to households
labor force
GDP equation (expenditure approach)
consumption expenditures
inflation
21. The number of dollars one receives as wages - rent - interest or profit
nominal income
real GDP
rule of 70
final goods
22. All people living in a society who are of legal age to work
circular flow diagram
seasonal changes
labor force
Okun's Law
23. Inflation arising from the supply or cost side of the economy
COLA
cost push
GDI equation
national income
24. 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
GDP Price Index
non-production transactions
GDP measures the market value of annual output and it is a __________ measure.
full employment
25. Income earned that is available to resource suppliers and others before payment of personal taxes
final goods
fixed income
personal income
rule of 70
26. A sustained rise in the general price level of an economy
nominal GDP
inflation
GDP Price Index
GDP equation (expenditure approach)
27. (1) final purchases of machinery and equipment by governments and business; (2) all construction; and (3) changes in inventories
natural employment
GDP Price Index
frictional unemployment
three kinds of Ig expenditures
28. Total income earned by resource suppliers for their contributions to the production of the GNP
gross investment expenditures
final goods
national income
nominal income
29. All investment spending by government and business firms
gross investment expenditures
participation rate
intermediate goods
inflation
30. Cost of living allowance
real income
Okun's Law
cost push
COLA
31. GDP = C + Ig + G + Xn
GDP equation (expenditure approach)
seasonal unemployment
rule of 70
gross investment expenditures
32. Second-hand sales (goods not produced that year) and financial transactions (moving money from x to y); not counted in GDP
expansion / recovery
personal income
unemployment rate
non-production transactions
33. Maximum output of business cycle
how to determine GDP
civilian labor force
peak
five sources of income
34. Cyclical unemployment is at 0
full employment
expenditure approach
cyclical / deficit demand unemployment
unemployed
35. Measures the amount of goods and services one's money can buy; measures purchasing power
government expenditures
real income
unemployment rate
Consumer Price Index (CPI)
36. Inflation caused by excess demand in the economy
circular flow diagram
demand pull
personal income
Gross National Product (GNP)
37. (base year basket valued at current year prices/base year basket valued at base year prices) x 100
GDP equation (expenditure approach)
frictional unemployment
three kinds of Ig expenditures
CPI equation
38. GDI = w + i + r + pi + misc
cyclical / deficit demand unemployment
GDI equation
non-production transactions
COLA
39. 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
Gross National Product (GNP)
net export expenditures
natural employment
personal income
40. Shows how money and goods and services flow between the various markets and players in the economy
circular flow diagram
Consumer Price Index (CPI)
unemployed
three kinds of Ig expenditures
41. Consumption - investment - government - and net exports
GDP (Gross Domestic Product)
cost push
GDP Price Index
four kinds of spending
42. Results from laborers having a mismatched skill set with what is demanded by the current labor market
structural unemployment
personal income
Consumer Price Index (CPI)
deflation
43. Phase of the business cycle where output and employment begin to move toward full employment
inflation
largest category of GDI
expansion / recovery
rule of 70
44. Output sacrificed due to unemployment
personal income
civilian labor force
GDP gap
trough
45. A basic accounting measure of total production of goods and services of the national economy in one year
civilian labor force
trough
GDP (Gross Domestic Product)
natural employment
46. Output measured at base year prices - and thus adjusted
real GDP
Okun's Law
GDI equation
labor force
47. (1) wages - (2) rents - (3) profits - (4) interest - (5) misc
labor force
five sources of income
government expenditures
seasonal changes
48. Those that are used to produce other goods that will eventually be sold (miller sells flour to a baker); not counted in GDP
five sources of income
participation rate
trough
intermediate goods
49. 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
nominal income
recession
rule of 70
circular flow diagram
50. Frictional + structural unemployment
natural employment
circular flow diagram
income approach
four kinds of spending